A renowned diversified conglomerate in Sri Lanka with rich heritage had identified that several of its SBUs had been underperforming in recent years. Hence, the group engaged Stax to develop a strategic focus that not only aimed to enhance profitable growth, but to also create social and economic benefits, in line with their Purpose.
Use an “inside out” rather than “outside in” strategic approach which includes thinking on the ‘Why’, ‘How’, and ‘What’ of the business, thereby aligning Purpose to Profit.
Implementing business frameworks such as the 4 pronged ‘Strategy Palette—Adaptive, Shaping, Classical, and Visionary’ to assist in cash management and resource allocation for SBU planning.
Portfolio rationalization to eliminate SBUs that did not have long-term strategic value to the overall Group strategy and Purpose.
Use Purpose as the focal point to create shared value, bring in the right people, compose a clear and comprehensive narrative, and create a movement that will change the industry and differentiate the business from its competitors.
Develop a strategic roadmap, reviewing all external opportunities regionally, and through best practices, prioritizing their portfolio and investments to align with the Purpose and strategic focus.
Review of the operating structure to assess whether it is capable of executing the Purpose-driven strategy.
Refine the Purpose so that it translates to growth and profitability, and builds clarity throughout the organization on what needs to be achieved.
Develop a growth story which will attract smart capital to the Group.
Top Line Impact
Transforming the business from merely a diversified conglomerate to a next-gen enabler.
Additional revenue streams through the identification of new offerings and service solutions.
Collaborative technology-driven platforms through the revamping of business silos.
Aligned strategic partners for each of the platforms.
The secured investment required for growth of each of the platforms.
Leveraged cross-sell and partnership synergies within portfolio.
Bottom Line Impact
Redefined role of the Corporate Center with a revamped operational structure which includes new leadership roles and shared services.
Highly aligned and engaged staff, driven towards a common Purpose.
A risk-based investment structure, moving away from its previous gut-based and unfocused investing approach.
Significant cost savings, with minimal revenue loss by removing underperforming SBUs.