Category Archives: Case Studies – Problem Solving

Divestment Support

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The client was a division of a UK PLC in the Environmental Service sector. Over the last decade the company has undertaken a significant change in strategic direction and continues to adapt to a rapidly changing market.The client has a track record of divesting in activities that are not core to the strategic plan.

The Group Board made the decision to divest the national waste collection activity to a major competitor. A deal that had to complete by a fixed deadline.

6two6 were contracted to support the divestment process. We took stewardship of one regional activity and ensured that “business as usual” was maintained throughout the process. We were required to ensure that the activity was structured for sale.

In order to meet this business problem we provided the following support:

  • Member of UK Executive Team – the positioning and presentation of activity
  • Review each operating business line to maximize value
  • Regular financial and operational reviews to ensure acquirer visibility
  • Implement KPI measurement to maintain performance
  • Implement a local ownership management structure for easy integration
  • Integral part of the divestment team to create and manage key relationships
  • Liaise on transfer requirements to maintain a constructive process
  • Manage operational transfer requirements at completion

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Operational Assessment

 

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The client was a division of a UK PLC in the Environmental Service sector. Over the last decade the company has undertaken a significant change in strategic direction and continues to adapt to an rapidly changing market.

 The client has a track record of investing in new technologies to stay at the competitive edge of turning waste into a resource through recycling and treatment processes. A recently completed process facility was fully operational and behind plan on performance.

The company leadership required faster progress on improvements and to eradicate unsustainable levels of operating losses.

6two6 were contracted to find solutions to the business problem by identifying what improvements could be made and to establish a reliable break-even position.

We approached the challenge via a number of interventions:

  • Assess current capability
  • Set up a project office and resource
  • Gain visibility of the key issues
  • Identify short-term actions
  • Implement a continuous improvement approach
  • Re-evaluate and negotiate commercial arrangements
  • Recommendations to the Group Board
  • Implement actions

The client was provided with an un-varnished and transparent appraisal of the current situation and likely future state. This enabled the Group Board to approve the recommendation to close and divest the facility in order to cap losses and recover value from the equipment and property.

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Contract Evaluation

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As one of the UK’s leading companies Whitbread takes performance seriously. Having out performed it peers in the FTSE 100, for creating shareholder value, Whitbread requires that all it’s stakeholders be on their game, in every area.

Whitbread has strong values backed up by challenging targets – they know where they are going and they are committed to getting there.

Environmental standards are very important to Whitbread and form a cornerstone of their strategy. They have already achieved many market-leading innovations in this area – but the job isn’t finished.

Whitbread has many long serving suppliers who have enjoyed the growth and loyalty few customers can offer.  In exchange they work with suppliers to keep finding improvements that will make them a more competitive company.  If all parties are aligned then all parties win.

Challenges were starting to appear in one key area, after several years of impressive progress. This was impacting on cost projections and sustainability targets.

6two6 were engaged to help Whitbread identify what was causing this business problem and to offer some solutions that would solve it.

The project required input from all stakeholders. Feedback information along with performance data enabled us to identify gaps in understanding and approach by the supplier but also some areas where Whitbread could make life easier.

The output was a report that was presented to all stakeholders including a joint presentation to the supplier and Whitbread. The report covered issues of contractual non-compliance, commercial impact and cultural alignment.

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6two6 were able to offer an independent perspective of the situation and provide the customer with a transparent and unvarnished view of potential improvements.

If you have a similar business problem to solve then please contact us to gain the benefits of a different perspective.