Pacific Strategy Partners

Related Articles: Organisation

Pacific Strategy Partners has assisted financial services, industrial and consumer goods clients to firstly identify the true performance of these contracts, then confirm if and how these contracts fit within the overall strategy of the organisation, and finally to negotiate drastically improved financial outcomes.

For many big organisations the effective management of large contracts is a major unrealised performance improvement opportunity. Typically these organisations understand the volumes, service levels and sales revenue of these contracts, but the underlying profitability is not well understood.

Most organisations have written a business strategy that provides guidance for the business direction and operational decisions. Often these business plans have some weaknesses that only become apparent after major shocks like the GFC; some basing actions on opinions rather than a rigorous fact base, assuming the future will be like the past and not considering other scenarios, and focusing on current operational problems not long term opportunities.

Ambition is a condition for business success. Concepts such as 'Stretch' and 'Blue Ocean' push the thinking 'outside the box'. But, how often do these visionary ideas remain visionary? And what unintended risks do they invite? For example companies that trail their ambitious vision set themselves up for a spiral of increasingly risky bets.

Most of us have been through profit improvement exercises - programs with acronyms like TPI (Total Productivity Improvement), PIP (Profit Improvement Program), Delta P (Change Performance). Some we umbrella brand as continuous improvement, others are focussed on turnaround or survival. They can be cost, productivity or revenue focussed - or the lot. We may give them positive spins by adding innovation and growth targets, but ultimately they are about improving cost, efficiency and productivity.

Our Client, a publicly listed company operating in the Australian travel industry, has a wholesale ticketing business which has been under threat from several market factors. Pacific Strategy was asked to develop a five year strategy to combat these threats with specific analysis focusing on a number of initiatives already underway as well as new initiatives.

Our client had a long standing complex agreement for the distribution of financial services products through another ASX100 company.

We worked with the client to address key issues that had arisen, developing a new operating model and organisation structure that addressed all the material issues with the current relationship, including an equitable distribution of profit and provided a growth story for both parties.

Pacific Strategy was engaged by a multinational oil and petroleum retailer to assist with a strategy review for the client's Convenience Retail group. The review was a major strategic initiative for the client at a time when the retail fuel market was dominated by two players and the overall market was under heavy scrutiny from government regulators and the general public.

Our client, a data and ethernet services provider on Australia’s Eastern seaboard, had market share aspirations of around 30% in the mid market but did not have a channel /distribution model to support this target. Pacific Strategy Partners helped to develop a distribution / channel model, organisation structure and implementation plan to meet its goals.