Adding Revenue

In our division, revenue was driven by value of client assets. We held clients’ assets, and they paid us a basis point fee on value of each of those holdings. But each month the system wasn’t able to value ‘some’ of those assets. The assumption was that if the system didn’t value it, it was a) just a few holdings, b) it was a temporary issue, and c) it would be solved by IT. So no one really paid much attention. After all, revenue had doubled in the last year...

But a lone ops manager (my supervisor at the time) knew there was hidden value. So we built models, data feeds – and within a year we uncovered and priced 4,000 stocks (10% of the total portfolio had been ignored), worth about $4 billion in value, or $800K in revenue…. Well, not just revenue. EBITDA!

This required no new headcount, no new technology, just a commitment to operational excellence and the courage to tackle seemingly insignificant problems.

I’m telling you this story to ask you this question. Could you be sitting on opportunities like this? There is profitability to be uncovered in really understanding your operations!

Reach out to me so we can discuss your situation, maybe I can help.