Finding cost savings to re-invest in new capabilities and new areas of growth

FTSE Consumer, Commodity Division

Context

With a change in leadership, our client had an aspiration to install new ways of working that focused on a leaner centre with higher investment and support for performance, growth and new priorities in OpCos. Headquartered in the UK the firm has significant OpCos in the UK and also in Africa and Asia.    

They also wanted to advance new aspects of strategy, especially around safety, ESG and more consumer-lead approaches in market (as opposed to being a commodity provider).

Solution

To do this, we initially reviewed  'above market' structures and costs to find efficiencies and installed new, leaner and more supportive ways of working that redefined the relationship between ‘group’ and ‘opco’.

In doing so, we were able to identify new sources of investment from the costs saved to fund further operational / production improvements, and the new strategic priorities.  We agreed what to deselect or deprioritise and where to raise the importance of others, principally commitments to Safety, ESG, targeted innovation and new routes to market or consumer propositions in some OpCos. 

As the client moved into implementation mode, we provided significant change support for transition: restructured OD, people transition, communications and post go-live engagement. 

Outcome

Significant savings were found from the ‘above market’ restructure - ca. £20M -  and OpCo’s autonomy was markedly increased, allowing OpCos to drive their own growth and performance strategy with full support from the global Exec.  

Beyond that, we created well funded and well-structured commitments to safety, ESG and operational performance.