Monday, December 9, 2024
Monday, December 9, 2024

Case Study: Leadership challenges in a SF-acquired company: Kalil Diaz and CCD’s growth path

This case study explores Kalil Diaz's leadership journey as he took on the role of CEO for Contact Centers Dominicana (CCD)...

Yale Case. By: Mason Scisco / A.J. Wasserstein

This case study explores Kalil Diaz’s leadership journey as he took on the role of CEO for Contact Centers Dominicana (CCD), a call center based in the Dominican Republic. Diaz acquired the company in 2017 through a SF. At the time of purchase, CCD had promising revenue streams but significant risks, such as dependency on a few large clients, minimal infrastructure, and a workforce that required substantial expansion. Diaz’s overarching goal was to transform CCD into a competitive player in the U.S. outsourced call center market while also creating valuable jobs in his home country.

Initially, Diaz faced immediate obstacles, from operational inefficiencies to resistance among staff about change. His first months were marked by a steep learning curve, as he had minimal experience with call center operations. His inexperience showed early when he realized he lacked critical knowledge of the company’s technology, labor processes, and operational metrics. Moreover, his employees were skeptical, with some questioning his capabilities. Diaz soon realized he had to navigate the delicate balance of enacting change without alienating his workforce, some of whom had been with the company since its inception.

One of Diaz’s most pressing challenges was scaling CCD to meet the demands of its major clients. One such client, Radiology Link, had high growth expectations, requiring Diaz to nearly double CCD’s workforce. However, Diaz’s HR head, Rodolfo Martinez, consistently failed to meet recruitment targets. Adding complexity, Martinez was closely connected to CCD’s former owner, creating an uncomfortable situation. When Diaz finally decided to dismiss Martinez, the experience exposed his inexperience in handling terminations and underscored the importance of assertiveness in leadership. Diaz eventually hired Larisa Paulino, an experienced HR consultant, who helped professionalize CCD’s recruitment and management strategies. This new approach significantly improved the company’s ability to meet client demands.

As Diaz settled into his role, he also confronted operational vulnerabilities, including an outdated IT infrastructure. An assessment revealed that CCD’s systems, hastily acquired and poorly configured, were increasingly unable to meet client expectations for reliability and security—critical factors for U.S.-based healthcare clients. Despite Diaz’s push to upgrade the systems, the board rejected his initial proposal due to the high cost and perceived lack of return on investment. The board’s response forced Diaz to adopt a more strategic and calculated approach in managing company resources and in framing proposals to secure their support. Later, after CCD experienced server overloads, Diaz was able to revisit the IT issue, emphasizing the importance of proactive infrastructure investments to prevent service disruptions.

Diaz’s journey also involved navigating unpredictable challenges, including hurricanes, which posed a serious threat to operations. In 2018, Hurricane Beryl highlighted the complexities of managing a business dependent on real-time service delivery amid extreme weather conditions. To mitigate these risks, Diaz developed logistics plans, securing transportation and food options to ensure CCD’s employees could continue working safely and effectively, even during storms. This resilience contributed to CCD’s reputation among U.S. clients as a reliable partner, which later became a competitive advantage.

In 2019, Diaz launched an ambitious growth initiative, “Vision 1,000,” which set a goal of doubling CCD’s workforce within two years. This target reflected Diaz’s desire to scale CCD, and he focused his team on measurable outcomes, such as recruitment, training, and client satisfaction. The initiative, supported by an internal branding campaign, energized the company and ultimately succeeded in expanding CCD’s employee base to over 1,000. This growth reinforced CCD’s role as a significant employer in the Dominican Republic, and Diaz took pride in the economic impact CCD had in the local community, providing middle-class opportunities for many employees.

By 2024, Diaz had grown CCD from a $4M to a $25M business, with employee headcount expanding from 200 to 1,200 and EBITDA increasing tenfold. This growth and the company’s increased market positioning attracted the attention of GeBBS Healthcare Solutions, which acquired CCD. Diaz’s leadership was instrumental in transforming CCD into a competitive, resilient business with substantial value for investors and the local economy.

The case study showcases Diaz’s journey in managing CCD’s operational, strategic, and leadership challenges, illustrating the complexities of small business leadership in an emerging market. His experiences demonstrate the learning curve for new CEOs and the critical importance of strategic decision-making, adaptability, and community impact in building a successful business.

Read the full case in: https://yale.app.box.com/s/hxy0eizolkgtspza9c3giohov79t0kxs

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