Case Study: Public Systems Integrator

Unsure where to turn when budget problems put its projects and employees in jeopardy, this integrator found that a little innovation – courtesy of MBO Partners -- can go a long way.

Client Situation

This large public systems integrator serves as a sub-contractor to a major consulting firm on a 10-year IT integration project for the Department of Defense. When a budget crisis forced the prime contractor to scale back spending, our client had to give many of its employees a difficult choice: accept a significant salary cut or lose their positions. But before resorting to this extreme measure, the client searched the market for alternatives. Soon it found the innovative engagement alternative offered by MBO Partners.

The MBO Partners Solution

The client turned to MBO Partners to implement a means by which its employees could transition to become MBO consultants as they worked on their assignments. By eliminating the overhead of employing these individuals, the client was able to offer attractive hourly rates for those transitioning to independent status with MBO.
But the true challenge was how to effect this transition quickly and with as little impact as possible on the client's critical projects. To accomplish this, MBO Partners conducted informational meetings with groups of transitioning employees and established a customized online enrollment process. Enrollment included an informational session with an MBO Partners Enrollment Manager, who created a personalized financial comparison of their previous salary versus their reduced salary against their expected earnings as an MBO Partners Associate. In all cases, their projected earnings with MBO Partners were shown to be substantially better than the reduced salaries they were offered, and, in many cases, even better than their original salaries.

The Result

When offered the choice to join MBO Partners, the vast majority of the client's contractors jumped at it. Over 80 of the client's former employees became independent consultants with MBO Partners.
As a result of our relationship, the client has reduced its cost structure while continuing to successfully meet its project responsibilities by maintaining its original project talent.