Business strategy consulting

Uncertainty and disruption shouldn’t limit your vision. Wipfli helps accelerate your trajectory with support for more effective strategy development and execution.

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Know where to act next

Prioritize the moves that can make the most impact now with our guide to a more practical decision-making framework
for mid-market strategy.

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Wipfli’s business strategy consulting services help you create an actionable, agile strategy that’s capable of holding up to the constant disruption organizations face today.

Know the obstacles limiting your performance and how to overcome them.

Develop and implement an effective strategic plan that keeps your organization agile.

Plan for the technology investments that deliver real value.

Execute your strategic plan and keep your organization aligned.

Guidance from vision to execution

When day-to-day demands make it difficult to focus on the future, our strategy consulting services help you step back and establish a clear direction forward. We offer end-to-end support to create a shared vision for your organization’s future and turn strategic priorities into measurable results.

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    How financial institutions can compete in today’s economy

    The financial services business climate is faster and more complex than ever. Today, traditional community financial institutions must compete for customers with not just each other, but fintech companies and new digital payment options, all while breaking through the noise of countless other demands on customers’ attention. How should an institution’s CEO adjust its growth strategy to succeed in this environment? Keep reading to find out, plus why doing so also requires a new approach to managing risk. How should community financial institutions adapt to compete in today’s attention economy? Winning customers’ attention, in today’s attention-starved environment, doesn’t mean creating a flashy ad campaign. Instead, it’s about meeting your customers (and potential customers) where they are by blending new technology, such as online account opening, with timeless community banking fundamentals. It’s this combination that helps your institution stand out from the plethora of large national banks, fintech companies and other digital payment alternatives competing for your customers’ business. Here are key actions CEOs can push to help drive growth and customer retention: 1. Win on customer experience Customer experience (CX) is what a customer experiences during their every interaction with your financial institution, including marketing, account opening, customer service and branch visits. CX is the single biggest strategic asset for community and regional financial institutions, because smaller institutions are better positioned than big banks and fintechs to build long-term, human relationships with customers that lead to organic growth. 2. Understand your customers better than ever To deliver that superior customer experience, you also have to understand what your customers want and need. To do this, do a deep dive into your customer data: Develop data-based personas, map your customer journeys, explore how you can provide more automated personalization and offer proactive services rather than waiting for your customers to come to you. 3. Use AI when it makes sense AI can help you analyze your data to learn about your customers more deeply. But you can also create customer-facing AI tools that provide instant answers to questions and personalized recommendations for products or services that fit a particular customer’s specific needs. Leaning into AI also helps give your employees more time to focus on the human aspects of their job, like customer relationships or complex problem-solving. However, you can’t just throw AI on top of ineffective processes or bad data and expect it to perform miracles — your foundation has to be solid before you add in AI . 4. Reduce friction wherever you can Friction kills CX. Nobody wants to wait for a slow app to load, navigate a clunky UI or struggle to set up a password for their new bank account. Reduce friction in your customer service experience wherever you can, as this is often an area where newer fintech companies will shine. Conducting a friction audit can help you accomplish this goal. During the audit, you’ll identify specific friction points within your customer experience and prioritize which ones to solve based on impact. 5. Offer a consistent omnichannel experience Whether a customer is stopping in the branch, opening a new account online, or calling your contact center to apply for a loan, they should feel like they are having a consistent, cohesive experience. This omnichannel approach is both a powerful branding exercise and an implicit promise that you will always come through for your customers. 6. Measure whether you’re delivering for your customers How quickly and smoothly can you deliver what your customers want? This is the essential metric you need to track, measure and seek to improve on, and someone in your C-suite should own it. 7. Earn (and keep) customer trust By taking the action steps above, you’ll also start earning meaningful customer trust. This is a long-term differentiator for community and regional financial institutions: The sense you’re looking out for your customers in a way that a fintech or a Wells Fargo never could. A frictionless omni-channel experience is also especially effective at building trust. While this might surprise you, how you manage risk and compliance also affects customer trust. And right now, the moment is ripe to change your approach to one that fits better with today’s business climate. Financial institutions should pivot to a risk-based approach to compliance and risk management Even as technology, markets and customer expectations are evolving faster than ever, regulatory agencies have pulled back on some of their traditional compliance oversight responsibilities . As a result, financial institutions have new flexibility to reallocate their compliance and risk management budgets from a compliance-based approach to a risk-based approach. Rather than approaching compliance as simply a box-checking exercise, a risk-based approach is more adaptive and better suited to navigating today’s risks and business realities. This strategy seeks to: Broadly assess your risks and compliance challenges. Identify risks as high, medium or low based on potential impact to your institution or customers. Prioritize mitigating risks that are higher impact so that you allocate your resources more effectively. Implement new or more effective controls to mitigate higher impact risks. Conduct ongoing monitoring and reassessment to ensure that your risk-management and compliance efforts continue to focus on where they’ll do the most good. A risk-based approach protects both your institution and your customer experience Risks are evolving as fast as the rest of the business environment is. By following a risk-based approach, your institution is able to constantly adapt as new risks emerge rather than getting locked into a compliance checklist that may no longer adequately reflect the latest risks in areas like cybersecurity or AI. Taking a risk-based approach is also a powerful tool to help protect your reputation with customers. Essentially, a risk-based approach goes hand in hand with your growth efforts by mitigating your risk of incidents that could hurt your customer experience (or draw attention to your institution for the wrong reasons rather than the right ones). Read more A short guide to vCISOs for financial institutions How should financial institutions respond to the federal compliance pullback? Minus a data strategy, financial institutions will fail at AI

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    Navigating changing Head Start compensation requirements

    In 2024, the Supporting the Head Start Workforce and Consistent Quality Programming established new compensation requirements for Head Start programs. Two years later (2026), with a new administration in place, many of those rules appear on the verge of being overturned in a new notice of proposed rulemaking (NPRM), Restoring Flexibility to Support Head Start Program Access , which rescinds many of those requirements and returns greater flexibility to local agencies. Despite the proposed rollback, the underlying workforce challenges that drove the original rule remain a major focus across the sector. Continue reading to learn what current rules could be going away and how your Head Start program should approach employee pay and benefits, regardless of the federal rules. Employee Compensation The 2024 Supporting the Head Start Workforce and Consistent Quality Programming rule introduced several significant workforce support provisions focused on employee compensation. Among other requirements, the rule directed larger programs to: Establish or update salary structures Work toward greater wage comparability with public school educators Ensure compensation was sufficient to support basic living costs within a program’s geographic area These changes reflected a broader federal recognition that workforce shortages, turnover and recruitment difficulties were affecting Head Start’s ability to deliver high-quality services. The proposed 2026 rule would remove many of these requirements, citing concerns that the rules are overly prescriptive, costly and beyond the scope of statutory requirements. If finalized, agencies would have greater flexibility to determine local compensation practices and priorities. While the future of these requirements remains uncertain, the workforce challenges that prompted the original rule have not disappeared. Across the sector, agencies continue to experience recruitment pressures, turnover concerns and ongoing competition for qualified talent. The conversation around compensation is likely to remain central to Head Start workforce planning regardless of whether the 2024 provisions ultimately remain in place, are modified or are rescinded. Employee Benefits In addition to compensation-related provisions, the 2024 rule introduced several requirements related to employee benefits. Programs were expected to provide or facilitate access to healthcare coverage, paid leave and behavioral health resources for eligible employees. Additional provisions encouraged agencies to connect staff with resources such as loan forgiveness programs, childcare assistance and other support services. The proposed 2026 NPRM would remove many of those specific benefits-related mandates. As with compensation, the stated goal is to restore local flexibility and reduce administrative and financial burdens on programs. Even as regulatory expectations evolve, the broader workforce conversation continues. Employee expectations regarding health benefits, paid time off, retirement programs and overall well-being support have changed significantly in recent years. The workforce concerns that influenced the 2024 rule remain active topics throughout the Head Start and Early Head Start community, particularly as agencies continue to navigate hiring challenges and competition for talent. Why Head Start compensation rules could already be changing The proposed rollback reflects a broader shift in federal policy priorities. The Administration for Children and Families has stated that the compensation and benefits provisions established in 2024 are costly, overly prescriptive and not fully aligned with the statutory language of the Head Start Act. The NPRM estimates that removing these requirements could save Head Start programs billions of dollars in future costs while providing agencies with greater flexibility to address local workforce needs. Whether the proposed changes are finalized remains to be seen. What is clear, however, is that workforce challenges continue to persist throughout the Head Start and Early Head Start community. And recent workforce data shared across the sector continues to highlight concerns related to vacancies, turnover, employee burnout and competition for talent. Whether future standards become more prescriptive or more flexible, agencies still need a stable workforce to deliver high-quality services to children and families. For this reason, agencies should consider building workforce strategies that can withstand changing regulatory environments. How should Head Start agencies proceed with a plan? Rather than viewing compensation and benefits solely through the lens of compliance, Head Start agencies should focus on how their workforce practices support the attraction, retention and engagement of qualified employees. Regardless of what happens to the 2024 provisions, agencies will continue to face competition for talent and the need to build a stable workforce capable of delivering high-quality services to children and families. Several workforce practices continue to represent sound strategies regardless of the regulatory environment: 1. Build a strong compensation foundation A well-designed salary structure provides the foundation for consistent, transparent and equitable compensation decisions. It establishes pay relationships across positions, creates clear salary ranges and helps agencies make compensation decisions that align with their compensation philosophy, budget realities and workforce needs. Just as importantly, salary structures should not be viewed as a one-time exercise. Labor markets continue to evolve, wage rates continue to increase and employee expectations continue to change. Agencies should regularly review and update their structures to help ensure they remain aligned with market conditions and organizational objectives. Agencies may also benefit from evaluating how their wages compare with both the labor market and the cost of living in their communities. While regulatory requirements may evolve, employees ultimately make employment decisions based on whether compensation is competitive and supports their economic needs. Understanding local wage pressures, labor market expectations and broader economic conditions can help agencies make more informed workforce decisions and strengthen their ability to attract and retain talent. Salary transparency is also becoming increasingly common and, in some jurisdictions, legally required. Clearly communicating pay ranges and compensation practices can help strengthen employee trust and support recruitment efforts. 2. Monitor the labor market broadly Public school districts remain an important comparison point, particularly for educational positions. However, many Head Start agencies compete for talent well beyond the education sector. Family support staff, transportation personnel, administrative professionals, fiscal staff, health services employees and agency leaders are often recruited by employers across nonprofit, government, healthcare, retail, hospitality and other industries. Understanding local labor market trends requires a broader perspective than school district comparisons alone. School district salary schedules can still provide valuable insights, but agencies should ensure they are making apples-to-apples comparisons. For example, when evaluating teacher compensation, it is important to understand not only annual salaries but also the number of contracted workdays and hours behind those salaries. Two districts with similar annual salaries may have significantly different hourly pay rates once work schedules are considered. In addition to school district data, agencies should consider reputable compensation surveys, nonprofit benchmarking resources and local labor market information. Looking across industries can provide a more complete picture of the competitive landscape and the talent market from which agencies are recruiting. 3. Prioritize pay equity and living wages Pay equity should remain a priority regardless of regulatory requirements. Consistent and transparent pay practices support employee trust, engagement and retention while helping agencies identify compensation issues before they become workforce challenges. Regular pay equity reviews can help organizations identify wage compression, unintended disparities and inconsistencies in compensation practices. These reviews can also provide valuable information when planning future compensation investments and salary structure updates. Agencies should also continue monitoring compensation relationships both internally and externally. Internal reviews help ensure compensation practices are applied consistently, while external benchmarking helps determine whether wages remain competitive within the broader labor market. The workforce challenges that helped drive the 2024 rule, including recruitment difficulties and employee turnover, continue to reinforce the importance of equitable and competitive compensation practices. 4. Evaluate total rewards, not just wages Compensation is only one component of an employee’s decision to join or remain with an organization. Benefits, paid leave, retirement offerings, professional development opportunities, well-being resources and workplace culture all contribute to an agency’s overall employment value proposition. As workforce expectations continue to evolve, agencies should periodically assess whether their benefits programs remain competitive and aligned with employee needs. Reviewing benefit offerings against local employers, neighboring school districts and comparable nonprofit organizations can provide valuable insights into potential opportunities for enhancement. Programs should consider the full employee experience when evaluating workforce strategies. In some situations, improvements to benefits, leave programs, professional development opportunities or wellness resources may have a meaningful impact on attraction and retention without requiring the same long-term financial commitment as significant wage increases. A strong total rewards strategy helps employees understand and appreciate the full value of working for the organization, not just the paycheck they receive. 5. Make workforce decisions using reliable data Compensation and benefits decisions are often among the most significant investments an agency makes. Reliable market data can help organizations make informed decisions, prioritize limited resources and identify workforce risks before they affect service delivery. Agencies that regularly benchmark compensation and benefits, monitor turnover trends, evaluate employee feedback and assess market competitiveness are often better positioned to make proactive workforce decisions. Data-driven planning can also help leadership teams and boards navigate shifting regulatory expectations while maintaining focus on long-term workforce sustainability. Ultimately, regulations may change, but the need to attract and retain qualified employees remains constant. Agencies that proactively evaluate compensation, benefits, market competitiveness and pay equity will be better positioned to support their workforce and continue delivering high-quality services to children and families. Use market data responsibly As agencies evaluate the competitiveness of compensation and benefits, it is important to use appropriate market data sources and benchmarking methods. While comparing compensation and benefits information with neighboring agencies, school districts, preschools and other employers can provide valuable workforce insights, organizations should avoid coordinating compensation decisions or sharing future pay plans with competitors. Discussions that move beyond publicly available information and into current or future compensation strategies may create antitrust concerns. Instead, agencies should rely on publicly available salary schedules, published compensation surveys, third-party benchmarking studies and independent market analyses when evaluating compensation competitiveness. Using objective market data helps agencies make informed workforce decisions while maintaining appropriate independence in compensation planning. Learn more Leveraging technology to enhance data value for Head Start programs Webinar: Head Start compensation and benefits Webinar: Find out how one Head Start leader turned smarter analytics into organizational wins

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    How to improve manufacturing profitability and margins

    Manufacturers are getting squeezed from multiple angles right now. Input costs are on the rise, supply chains are unpredictable and labor keeps getting more expensive. But in this environment, margin and profit improvements are achievable. They require discipline, an honest assessment of your operations and a willingness to act on what your data is telling you. Keep reading for strategies to improve your business’s profitability. What’s squeezing manufacturer margins right now? It’s no secret that margins are currently tight in manufacturing. The top two causes of that are supply chain challenges and rising labor costs. Supply chain instability Supply chain disruptions drive up costs and make planning more challenging. Manufacturers are dealing with significant supply chain volatility right now, due to the following factors: Tariffs continue to be unpredictable. The Canadian tariffs are the latest example. Resin availability is unpredictable and prices are going up. Steel and aluminum availability and pricing continue to be a challenge. Geopolitical uncertainty in places like the Middle East, Russia, China and Taiwan continues to create trade relationships volatility, making it nearly impossible for manufacturers to lock in stable demand and supply plans. Labor costs Starting wages in manufacturing have climbed to $17-$20 per hour in many markets. That’s compressing margins across the board. Even high-performing manufacturers are seeing margin compression right now as labor, benefits, utilities, supplies and indirect costs all trend upward simultaneously. The challenge isn’t just cost. It’s that many organizations haven’t raised prices fast enough to keep up. At Wipfli, we’re seeing a significant number of manufacturers’ balance sheets showing signs of financial distress, including covenant violations, forbearance situations or unsustainable debt-to-earnings ratios. If you don’t have a strong balance sheet when things get hard, survival becomes less likely. How to improve manufacturing profitability Consistently turning a profit is tough for manufacturers in today’s landscape. Here are some items to focus on that could improve overall profitability: Rethink your pricing strategy Most manufacturers do a reasonable job of incorporating the costs of raw materials into their pricing. Where they fall short is in recouping all the other inflationary costs, including direct labor, indirect labor, benefits, utilities and supplies. These line items are all going up, and the value-added portion of a manufacturer’s cost structure is taking the most compression. You must separate the raw material price conversation from the broader inflationary cost increase conversation. And it’s a conversation you must have with customers, even if it means breaking a contract or pushing back on a “no.” Pricing strategy also means evaluating your existing capacity. If you have open press time or machine availability, you can price more aggressively to fill that capacity and cover overhead. If you don’t have capacity and would need capital investment to take on new work, that changes the math entirely. Pricing a project that requires a large investment, the same as one that uses equipment you already have, can create real cash flow challenges. Maximize your technology ROI Automation investments are spendy. Manufacturers with tight balance sheets can’t afford to spend millions automating medium- or low-volume parts just because the technology exists. The right question isn’t “should we automate?” It’s “what level of automation do we actually need to run this profitably?” That spectrum runs from solid process flow and hand automation on the low end to fully autonomous cells on the high end. And many organizations that think they’ve fully automated are still putting an operator at the end of the line waiting for parts. That’s not automation. It’s a gap in execution. When evaluating a capital investment in automation, consider: Value-add vs. volume: Higher-volume parts justify more automation. Low-value-add parts may actually need automation most, because the economics don’t justify manual labor. Flexibility: Can this asset be redeployed if the project doesn’t meet volume expectations? Prioritize equipment that can be used across multiple projects over single-purpose pieces of equipment. Phased approach: Start with entry-level automation that has a lower payback threshold. Evolve the automation plan as volumes increase and the product matures. Think of capital investment like a ladder; you don’t have to start at the top rung. A phased approach that builds in flexibility de-risks the investment and keeps you from overextending on a project that hasn’t proven its value. Manage labor more efficiently As wages rise, it becomes more important to maximize throughput and value added per hour of labor. Here are a couple of practical strategies: Reduce reliance on temporary labor: Temp markups can run as high as 60-65%, while the cost of hiring someone full-time with benefits is closer to 20-30%. In this labor market, you’re not saving money on temps anymore. You’re paying a premium for flexibility you may not need. Temporary workers have their place, but should not be viewed as the easy button. Eliminate low-value work: Manufacturers frequently throw labor at small problems because they don’t want to spend the time or money to solve the root cause. This practice compounds labor challenges. You end up with a disproportionate number of people doing inspections, moving product unnecessarily or absorbing transactional waste that proper process design would eliminate. Control material costs Buying on contract or locking in a price through futures markets is a good option when available, but most manufacturers can’t rely on it. Distributors pass through market pricing, and a six-month PO doesn’t guarantee a six-month price. So the strategy shifts to speed and transparency. Identify when prices change quickly and be ready to pass those costs on. To show your customers you’re operating in good faith, pass along price drops the same as you do for increases. For manufacturers, those hard pricing conversations get easier when you have built trust with customers. Two other tactics that matter: Multiple suppliers and approved materials: If you’re single-sourced on a critical material, your leverage disappears. Qualifying a second vendor or second approved material takes upfront work but offers supply continuity and potential leg up in price negotiations. Lessons from COVID still aren’t being applied consistently. Don’t wait for the next disruption to learn this again. Pay suppliers on time (or early): Manufacturers with stretched balance sheets stretch their suppliers. That’s one of the fastest ways to lose material availability. Organizations that pay on time, or even early, for potential discounts, can expect more consistent supply and maybe preferential terms/price. Know your market Cost-plus pricing is a starting point, not a strategy. The best manufacturers actively build market intelligence into how they quote and how they assess their business. Track your own hit rates. Review your margin reports by customer and market. When you miss a quote, do some digging to understand where your pricing was off and whether it was material, labor or both. That feedback shapes how you quote the next job and how you structure your business to be more competitive overall. Build real cost visibility Cost visibility plays a key role in margin improvement. But many manufacturers struggle to understand all the costs that need to be factored into pricing. Start with your bill of materials: Audit your highest-volume and lowest-margin parts regularly. Are you running them the way you said you would when you priced them? If your actual cost differs from the standard cost by more than 5%, you need to understand exactly what’s driving the gap. It’s often a performance erosion problem, not a pricing problem, that is entirely within your control to fix. Price by part, not by blended rate: When it’s time to pass on a price increase, don’t tell a customer you’re raising everything by a certain percentage. Show them by part where costs are increasing and where they’re coming down. Not every part carries the same labor or material cost. The manufacturers who can walk into that conversation with part-level data look sophisticated. The ones who can’t look like they’re guessing. Be honest about your low-volume, high-mix parts: They can look like big profit drivers on paper. In reality, they create supply chain complexity, scheduling headaches and labor inefficiency. Do a tail analysis on your lowest-volume parts and customers. For the ones that don’t make sense, either reprice them, restructure how you run them or have a direct conversation with the customer about the arrangement. Know your money makers Finally, be honest with yourself about where you’re actually making money. If someone asks you what your 10 most profitable parts are, you should be able to answer without hesitation. Find ways to produce as many of those products as possible. Read more Cybersecurity in manufacturing: Risks and best practices The impact of Canada retaliatory tariffs on U.S. manufacturing Tax treatment for tariffs: How U.S. manufacturing companies should treat tariff costs and IEEPA refund uncertainty under U.S. tax rules

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