Client: Ameritech, a regional Bell operating company (RBOC) acquired by AT&T, Inc.

Project: Client wanted to obtain a clearer picture of how much it cost to sell and market its various services in key market segments. 

Results: Clarified strategic focus and identified key cost drivers. Created an activity-based-costing model enabling data collection and analysis by service line and market segment, as well as customer size and geographic location.  The outcome was the discovery that certain services with high operating margins and thought to be profitable were actually losing money due to high selling and support costs. The reverse was true for other services. Study also highlighted which market segments were most and least profitable. Identifying key cost drivers provided opportunity to reduce costs significantly by product and market. Client utilized results to reengineer sales and marketing organization and refocus efforts on particular services and markets.

Testimonial: Client team lead won major company-wide award for best consulting project of the year within the company.