Case Study
World’s Largest Integrated Security Organization Redesigns Operating Model and Reduces Unit Cost Through Back Office Rationalization and Consolidation
$28M
Annualized EBITDA Improvement
Strategic Imperative
To optimize organizational performance and effectively implement a new field support function, generating a $27M EBITDA impact to support acquisition readiness
Client Background
- Global $23B security provider with a labor-intensive field organization serving diverse customer requirements
- Engagement centered on $1.6B U.S. operations, including field support, centralized services, labor scheduling, capacity management, and customer delivery
- Service economics depended on precise workforce deployment, billable-hour control, field responsiveness, and scalable back-office support
- A global digital transformation strategy required standardized processes without eroding the entrepreneurial culture that built the business
- Executive leadership sought to maximize enterprise value before positioning the business for acquisition
- EBITDA margin stood stagnant, while fragmented support services and nonbillable overtime constrained profitability
Key Issues & Barriers
- Prior acquisitions created disparate cultural values and uneven adoption of common operating expectations
- Entrepreneurial growth produced highly variable customer-facing practices across field operations and service delivery
- Labor scheduling and capacity management knowledge varied significantly, driving nonbillable overtime and inconsistent workforce utilization
- Fragmented support services increased SG&A and limited consistent support for field operations
- Revenue resources were not sufficiently focused on high-margin customer targets, limiting profitable growth
- Strong-willed, highly independent leaders limited consensus around enterprise priorities and centralized operating-model decisions
Key Implementation Components
- Developed and implemented an organization-wide delivery model aligned with the global digital transformation strategy
- Restructured and centralized support services to reduce duplication, lower SG&A, and improve field responsiveness
- Designed and implemented a centralized field support function to standardize service delivery and operating control
- Segmented value-added and non-value-added work content to rationalize support investments and resource requirements
- Redeployed revenue resources toward high-margin customer targets to strengthen profitable growth and EBITDA performance
Benefits & Results
$28M
Annualized EBITDA Improvement
$10M
Year 1 Cash Benefits
400 BPS
Nonbillable Overtime Reduction
26%
Central Services SG&A Reduction