From Integration to Transformation
WORKING WITH A NEWLY FORMED MANAGEMENT TEAM TO CREATE A MARKET LEADING £3BN ASSET FINANCE ORGANISATION. USING INTEGRATION AS THE TRIGGER FOR SOME FUNDAMENTAL CHALLENGES TO WORKING PRACTICES.
Having acquired three Asset Finance businesses, our client needed to create an integrated enterprise that would justify their initial and ongoing investments. We were commissioned to support and guide this integration, resulting in the creation of what became the most profitable and efficient leasing company in Europe.
The Challenge
How to turn a string of similar businesses distributed evenly around the M25 into a single and successful enterprise.
Our Solution
We recognised that our client could use integration as an opportunity to transform how the organisation operated. Working with the new senior leadership team, we challenged their views on what was possible for the business. They signed up to a new approach to improved portfolio and risk management; one which would allow them to surgically target sales to where the optimum balance of risk-return could be made. Once agreed, our key activities were to:
Design what the new business would look like. We worked with the senior leadership team to design and agree a Target Operating Model. This set out, on a single page, how the new enterprise would operate, including organisational structure, processes, procedures, performance measures and behaviours. We agreed that it would be a single business, on a single new site, with benchmark performance characteristics, underpinned by effective portfolio and risk management.
Map the organisations to the new structure. We worked directly with the senior leadership team and their direct reports to identify where legacy functions and resource would go in the new world. We focused in particular on developing the new leadership structure and behaviours as we knew that these would prove critical for the new organisation.
Plan the migration and key transition points. We designed a clear programme structure and plan for creating the new organisation and migrating legacy functions and resources. This included key transition points – where staff transferred, books migrated and new capabilities were required. By planning these points, we supported a synchronised customer communication process - keeping customers on board as accounts and relationships changed.
Coach and support the leadership team throughout the successful implementation. We continued to work with the leadership team throughout the exercise, advising on how to resolve issues and challenging them to make the integration a success.
The Outcomes
Through our support, the businesses were integrated and transformed without a hitch. The merger created a new business widely recognised as the most efficient and profitable leasing business in Europe, delivering a RoE of over 25% and a RoA of almost 3%.
