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©2017 by Crain Communications Inc. All rights reserved.
Success Story ShowcaseAdvanced Group
Speaker:§ Leo Sheridan, CEO, Advanced Group
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SUCCESS STORY SHOWCASE
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Advanced Group History
Started as a clerical temporary staffing company in 1988
Market conditions forced a change in
strategy as we lost our top three customers to Kelly Services in 1991
Researched industry to find high-‐value growth opportunities:•One-‐on-‐one hiring manager relationships•High gross margin – 30% +•Apparent growth drivers –long runway, high demand•National opportunities
Flipped coin in living room and selected IT vs engineering for our 1st expansion into professional niche
staffing. Have followed this strategy for 28
years
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0
50
100
150
200
250
2009 2010 2011 2012 2013 2014 2015 2016 2017 est
REVEN
UE (in
millions
)Advanced Group: Revenue
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Advanced GroupFour businesses, supported by an exceptional Shared Services team
Shared ServicesAccounting, HR, IT, Marketing, Operations
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Advanced Group Solution Offerings
Staffing Services
• Clinical Research• Validation/Quality• HR• Accounting/Finance• IT• Healthcare (non-‐clinical)• Office Support• Marketing/Creative
Outsourcing
• RPO• CRO• FSP
Workforce Business Solutions
• Managed Staffing• payPRO PayrollingSolutions
• Workforce Management Consulting
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Advanced GroupGeographic Footprint
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Advanced GroupCulture Is Key
Ensuredeep
RespectRespectfor
people
Promotea consistentcultureofExcellenceExcellence
LeadershipLeadershipin allthat wedo
Demonstrate
BeAccountableAccountable
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Advanced GroupKey Differentiators
CultureHighly
engaged workforce
Award-‐winning
Technology Marketing
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The Advanced StoryStep #1: Focus on “professionalizing” our Chicago-‐based legacy business, Advanced Resources
Migrated from being a clerical staffing firm to a professional firm focused on the middle market
Leveraged our relationships in Chicago to extend into higher-‐end segments (accounting/finance, HR, healthcare, and IT)
Hired pedigreed leaders wired with our DNA to lead these lines of business
Focused on cross-‐selling and collaboration
Focused on “D & D” – discipline and differentiation
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The Advanced StoryResults: 2009 vs 2016, Advanced Resources
2009 2016
Revenue $10 million $60 million
Contract GM 22% 29%
Clients billed 200 600
Avg spend/client $50k $100k
Top ten 65% of total 36% of total
Contribution margin
5% 15%
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The Advanced StoryStep #2: put a stake in the ground in clinical research
Became a leader in clinical research staffing in the U.S.
Extended solutions beyond staffing to include SOW/FSP & full outsourcing
• SOW/FSP – semi-‐deliverable project work – “staffing on steroids”
Invested in building full-‐service global outsourcing CRO that provides custom solutions to mid-‐market pharma, biotech, medical device
• Large programs that last multiple years, 50% + gross margins
“One Stop Shop” – Staff Augmentation, FSP, CRO
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The Advanced StoryStep #3: developed a startup in the marketing/creative niche
Started WunderLand in 2009, right in the middle of the recession
We felt post-‐recession marketing spend would grow quickly
“Digital” was becoming the new buzz word
National presence – expanded from Chicago to NYC, San Francisco, and Seattle
Looking to build national brand across major markets in U.S.
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The Advanced StoryStep #4: added RPO to our mix of Human Capital Solutions
Absorbed a small RPO in 2010
Rebranded in Q2 2016 –Advanced RPO
Customers across the Advanced Group are available for cross-‐selling
We believe that in the future, RPO services will be bundled with flexible work force solutions
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The Advanced StoryWhere we won’t waver …
Culture Relentless about quality and service
Focus on Talent Acquisition Excellence (TA + technology + digital marketing)
Best of Staffing perennial winner
(Advanced Resources = 8-‐peat)
Improving operational consistency (“80/20”)
Domain expertise in our respective categories
Staying paranoid about industry disruption
Building leaders Highly engaged workforce
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The Advanced StoryLooking ahead…
Focus is on achieving $500 million by 2021
Adding key operational leadership
• CHRO: create world class people practices• Vice President of Marketing: drive innovative digital strategies
Continuing to branch into new professional segments & geographic markets
CRO -‐ growing at a 50% clip (with 50% margins)
We have a cadre of leaders with “half a billion” of leadership capacity
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Leo’s Learnings
DON’T BE AFRAID TO ASK
FOR HELP
Surround yourself with successful
people
Join business groups that help you personally and
professionally –YPO, TEC
Develop a Board of Advisors – keeps you accountable and they push for performance Develop/join an
owner group to collaborate and share successes –ISSA, Roundtable
Work with consultants to accelerate
organizational development
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Leo’s Learnings
IT’S ALL ABOUT YOUR
PEOPLE
Hire with discipline (WHO) & don’t hire anyone you can’t
fire
Surround yourself with great people you trust and
respect
Hire people who have “been there
done it “
Leader/Manager –focus on servant leadership – make your people wildly
successful
Employee Engagement –
focus
Focus on TEAM –start at the top.
The most important team
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Leo’s Learnings
KNOW YOUR
STRATEGY
Key! Know it & follow it with discipline. Fire customers that don’t support your strategy. Don’t get seduced by revenue if it doesn’t fit
your strategy
Structure follows strategy – right people
in the right seats
Think Big and be the best
Be a student of your space and always be
paranoid. Get there first
Listen to your customers. Position as trusted advisor then
listen. They will take you where you need to go
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Leo’s Learnings
FINANCIAL LESSONS
Develop a great banking relationship
Always create value -‐understand how others value your
business
Gross margin focus –continuous
improvement – 30% plus
Develop growth plan – reinvest at a pace you’re comfortable
with
Phantom Stock –create a cadre of
owners
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Leo’s Learnings
PERSONAL LESSONS
Partnerships are stressful -‐ keep them as healthy
as possible
Work hard, play hard
Stay healthy -‐hard work 24/7
Take risks, but don't bet the
farm
Never stop learning
Stay humble
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SUCCESS STORY SHOWCASE
Questions?
Contact Information:Leo Sheridan
©2017 by Crain Communications Inc. All rights reserved.
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