Our client is a leading global logistics company that structures its operations around multiple and diversified businesses (in oil, chemicals and logistics).
As one can imagine, in a cyclical logistics and oil business, a leader will tend to shape the ecosystem of the sector and not fall into the price war game. This as such made our client seek support to find new ways to reinvent the strategic horizon and pursue a long-term path to:
- Draw their long-term expansion strategy
- Establish a strong logistics network globally
- Diversify the portfolio to overcome the cyclicality due to the unpredictable business environment
- Overcome the barriers of generic strategic thinking into a cohesive way of strategy creation, realisation, mobilisation and, above all, inspiration
The client is in the phase of shaping the future while it is still successful, being aware of the current cyclical unpredictability of the business, and therefore wanted to address four major pillars:
- Enhance current business in an innovative way that balances the financial yields and at the same time sustains business value in the longer term
- Expand within businesses related to current key units (such as oil)
- Expand into new businesses and identify new types of businesses worthy of investment
- Digital transformation in the context of joint ventures with emergent technologies on the rise
Based on the challenges described, and the evaluation of the needs, TTM associates’ solution was structured around understanding the current organisational performance and strategy deployment and therefore developed the “Vision to Cohesion” consulting solution in a Triangulated 360 Strategic Revamp Process.
This process was put into the context of the client’s strategic situation. Therefore, TTM met with the executive team, with the end in mind to receive input on the objectives to be achieved in a strategic planning system, and define what it takes to be agile to combat challenges and capture opportunities, which included:
- Set the purpose
- Study the present performance
- Create and deploy the process and practice
- Balance between the impact of change on people and managing stakeholders’ expectations
SET THE PURPOSE
In this phase, TTM focused on defining what success looks like from the CEO’s perspective and worked closely to create a clear vision, objectives and expected pay-offs with strategic alignment in the horizon of the next five years, and to set success criteria and shape the strategy when it comes to people, process and performance.
This involved brainstorming sessions with the CEO and one-to-one session(s) with the executive team investigating the current structure of the organisation.
This phase culminated in clearly defining measurable strategic mandates and KPIs for the next five years.
STUDY PRESENT PERFORMANCE
During this phase, TTM associates engaged the executive team to analyse the current situation “as is”, which involved revising the structure, strategy, roles and responsibilities, including:
- Analysis of the current performance and define areas of improvement and areas of synergy
- Analysis of the work process and flow and define areas of overlap and areas of synergy
- Analysis of the investment policy and aspects of the group/centres and areas of synergy/improvement
This phase resulted in gauging areas of synergy and defining them, as well as gauging areas of improvement and raising performance, which culminated in defining:
- Key breakthrough areas that enhance all business units’ performance
- Key areas of improvement for the sustainability of the vision and objectives
- Key business fundamentals that enhance the smooth rollout of operations and current projects in place
PLAN OF ACTION AND PROCESS DEPLOYMENT
This phase resulted into the creation and deployment of a clear process, action plans, KPIs and owners to deploy the strategy and ensure the expected outcomes are met (with contingencies in place), including:
- Clearly define the actions to be taken to run operations smoothly
- Clearly define the owners of each action
- Clearly define the timelines and KPIs of each action
- Clear process for implementation and monitoring of the system
MANAGING STAKEHOLDERS, PEOPLE AND CHANGE
This phase was very important to manage the expectations of stakeholders and enhance the acceptance of the various people affected by the new process and systems. TTM designed a timely rollout plan for the change, and at the same time designed tools to manage the change cycle during and after the implementation to achieve alignment of all stakeholders on key actions and deliverables/timelines, while at the same time mitigating the risks associated with acceleration of the development cycle and integration of the newly established systems and processes.
Despite the best intentions, many organisational transformations fall short of their goals, from failing to convey the right change story to lacking an effective process to track initiatives. All of these mistakes can thwart a successful transformation plan.
TTM’s approach was successful because it focused on the basics, helping the organisation successfully set performance aspirations based on its full potential through achieving the cohesion between the two fundamental stages of strategising:
The Vision: where we helped executives to shape their dreams, purpose and strategic objectives.
The Cohesive Execution: where we helped executives and their teams to cohesively adopt a cooperative, agile and robust deployment process.