How we helped a private equity firm to build a performance tracking system for one of its portfolio companies

March 17, 2023

The Context

The client, a Private Equity firm, wanted the TresVista team to build a performance tracking system for their franchise stores and generate automated reports that would be used periodically in management meetings. The team was provided with specific metrics that were to be monitored for the exercise.

The Objective

To increase the value of franchise stores owned by the client by improving their top and bottom-line performance by tracking the portfolio results through weekly reports and take adequate measures to keep its operations on schedule and optimize them.

The Approach

The TresVista team followed the following process:

  • Created metric-specific reports (which included Sales, COGS, Labor, and Out of the Door Time) for completing weekly trend analysis for individual stores and finding region-wise performance
  • Developed a budget for P&L specific metrics based on historical performance, with the targets provided by the franchisor
  • Designed a Scorecard dashboard offering a view of the store-level performance on financial and operational metrics which provided store-level ranking for each individual metric

The Challenges We Overcame

The major hurdles faced by the TresVista team were:

  • Discrepancies in data and inconsistent format of input file made data extraction and excel template automation a difficult process
  • Multiple iterations were there for incorporating changes from multiple stakeholders

The team overcame these hurdles by creating an automated excel template using complex functions that reduced the number of steps to pull data and update reports on a recurring basis.

Final Product (Sanitized)

The Value Add – Catalyzing the Client’s Impact

The TresVista team streamlined the entire process of performance tracking resulting in the process now taking less than half a day to generate the weekly excel-based reports. The scorecard prepared by the team offered a birds-eye view of each store’s absolute and relative performance on key financial and operational measures. The scorecard and budget analysis also became the base for calculating bonuses for store managers. Furthermore, this deliverable led to an efficient system being put in place by the team for spotting discrepancies in financial and operational data pull.