Monday, 17 October 2011

Mini-Case Study 1: Doubling Net Profit In 18 Months


Scan: a care homes group in the Midlands with 6 homes. Good care, good people, low profits, no growth. Being out-gunned by national big company competitors.


Evaluate:
too many NHS residents at low rates. Residents cared for, but not happy. No strategy. No direction.


Recommendations
: increase the rates; cap NHS resident numbers. Invest in activities to create happier residents. Launch positive initiatives: position as leaders in “home-from-home care” (what the big companies could never do); create a Fair Prices Campaign positioning them as the champions of good value; Elderly In The Community Awards to build community relationships, attract sponsors and recruit new residents.


Results
: happier residents; a waiting list of residents; net profit margin up from 12% to 26% in 18 months.



Contact Paul Jobin or Robert Craven at The Directors' Centre to find out more

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