Rejuvenating a Company

Ruth Wallace (founder of CFORuth & Associates) recently led Medical Staffing Network, a national staffing and workforce solutions company, through significant changes in technology, operations, and culture, resulting in a successful liquidity event for its owners. Medical Staffing Network was challenged with extremely high overhead, lack of scalability, and stagnant growth. By prioritizing efforts in the noted key areas, the company supported its sale to a strategic buyer in June of 2014. This sale was enabled by the following year over year results:

  • Revenue growth of 7%
  • Gross margin increase of 60 basis points
  • Overhead margin improvement of 280 basis points
  • Turning monthly cash losses into monthly cash profits of over $1MM

Executing Change

During a period of ten years (prior to bankruptcy) Medical Staffing Network had completed a plethora of acquisitions and had not integrated these businesses. Branch operations, technologies, processes, and culture were generally left as they were at acquisition. To support reporting and regulatory requirements, the business continually grew its administrative headcount to handle the work effort.

Ruth and the leadership team focused efforts to drive short term financial improvements, stabilize revenues, and position the company for future growth.

Integrate and Centralize Services

  • Migrated personnel data for over 200,000 employees from 8 disparate ERP legacy systems to 1 platform, for both front end and back end operations
  • Upgraded and reinstalled Dynamics/Great Plains financial system and integrated it with the new ERP platform
  • Implemented and trained on new standardized processes
  • Centralized credentialing, payroll, and call center operations
  • Installed web-based recruiting and document storage technologies

Scalability and Quality

The change implemented at Medical Staffing Network transformed them from a decentralized and fragmented operation to a cohesive structure, enabling the company to drive high quality growth without additional cost. In moving to one system, the inventory of staffing personnel could be viewed and scheduled nationwide. Web-based recruiting tools that allowed personnel to apply by mobile device improved the timeline from career interest to client booking by weeks. Centralized credentialing and new system integrated tools ensured staff had the required professional requirements before scheduling could occur in the system. These factors led to improving financial results and successful outcomes for all stakeholders.

How can CFO Ruth & Associates assist you?

Your team is smart, dedicated and hard working. However, even the most tireless teams can only work so many hours in a week. Do you find yourself contemplating any of the following?

  • Which project should go first?
  • Where do we start?
  • How do we use our people best? 
  • Can we improve automation?

Let CFORuth & Associates lead your performance improvement and dynamic change initiatives.

We can achieve more, together. At the conclusion of our engagement, your team will be equipped with the tools, knowledge and experience to sustain positive results.