Setting a clear path to becoming a “best in class” Asset Finance provider’

The Problem

Our large Asset Finance client was emerging from the financial crisis and seeking to develop a longer term and more stretching plan to build on their solid platform.  The Senior Management Team (ExCo) felt performance was good. However, they were looking for an expert external view on what opportunities they had to improve their performance and, specifically, what needed to be done to become “best in class”.

Our Solution

We ran a short exercise over a few weeks in the run up to their annual planning cycle.   We quickly completed Step One of our Asset Finance diagnostic exercise to analyse their financial performance against a set of key metrics and identify the headroom for improvement.  In the process, we estimated the benefits of closing that gap. 

We planned and delivered a workshop for the ExCo to complete a self-assessment of their current capabilities against our end to end Asset Finance “What good looks like” framework. The framework is our unique view of what makes an Asset Finance business successful and what is holding them back, developed from our work with clients from across the industry. Spanning strategy, business management, operations and infrastructure, it identifies:

  • Target performance metrics to compare organisations
  • Operational metrics needed to drive overall performance
  • Capability and key characteristics underpinning operational excellence.

During the workshop, we agreed the key capabilities which will enable our client to transform.  These capabilities spanned a number of functions; Sales and Marketing, Operations and Risk.  They also spanned key elements of infrastructure such as data, operating models and systems.  Finally they included key changes in people, skills and culture.
   
We also assessed our client’s current project portfolio to identify how well these built the desired capabilities.  Finally, we explored the options to pause or stop the lower priority projects and initiate new projects to build the desired capabilities.

Client's Benefits

As a result of our work, our client recognised that there was significant room for improvement and the potential to increase profits by 300% over a four year period.  This prompted them to recalibrate their aspirations for both financial results and transforming their business.  As a consequence, we initiated the first steps in the change management process.

Furthermore, our client understood how it could move from current performance to “best in class”. Our client knew which 12 capabilities it needed to develop as well as the adjustments it needed to make to the current change programme to deliver these capabilities.