Operations Case 1 – Business “turn-around” for subsidiaries of multi-billion-dollar corporation
situation
Top management recently launched a transformation initiative to reposition the company and consolidate
its 20+ businesses into newly formed Directorates
Many of the subsidiaries were losing money; Management therefore was seeking to turn-around unprofitable
subsidiaries into commercially-viable businesses
Management team also sought to foster a performance culture of accountability and collaboration among
its subsidiary companies
our approach
Consolidated 26 business initiatives across 7 subsidiaries
Developed project ranking/ prioritization matrix based on “Capital versus Technical Requirements” to
identify core initiatives to focus on (quick wins)
Developed investment thesis for prioritized/ shortlisted initiatives:
Feasibility study on markets
Project economics and payback analysis –NPV, IRR...
Operational requirements and partnership model
Developed partner screening templates and supported selection process e.g., operating model and
profit-share mechanisms
Outcome
Business units that had been loss-making for the past 5 years became profit centers within 12 months of
program implementation
Robust action plans and investment thesis highlighted required investments, expected returns, risks and implementation next steps