Growth Opportunities SBUs

Operating a Corporate Greenhouse: Growing Underperforming SBUs of a Diversified Conglomerate

The Situation
  • 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.

The Assignment
  • 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.

The Benefits
  • 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.