Rationalising operational assets can deliver significant bottom line benefits but can also be a daunting task, requiring complex economic decisions while dealing with tough people issues. Decisions require a detailed cross-functional review of the performance and future requirements of a business, using tools that are typically not part of everyday decision making. This is where PIP can help.
The value of closing (or retaining) assets is a balance of cost, revenue and capital implications. To effectively identify the value in the decision making process, we prepare by:
PIP focuses on three elements in facilitating decision making and enrolling key stakeholders:
Value can easily be lost in the implementation through delays and cost escalations. Successful implementations are characterised by strong communication plans, tight management of variance to timelines and targets, and a continuous effort to identify opportunities to further increase value. Key elements of PIP’s approach include:
PIP's team mobilised our senior management team to get real alignment behind the asset portfolio optimisation process, notwithstanding significant sensitivities. The process, led by the PIP team, produced significant 'actionable' insights, and related decisions, within just eight weeks. PIP has been very effective at structuring issues and working to deliver the most value at the least cost. PIP have been invaluable at helping us understand the true economic drivers of our business, 'how to optimise our assets', and creating an actionable and practical plan to execute on this. [PIP's] ability to engage with senior management also ensured that the recommendations addressed stakeholder concerns, and had the management on-board.MANFRED HOSCHER