Retirement target operating model
We were asked by a client to support them in defining their future state retirement journey should look like, what capabilities are required to support it, and the changes required to put those capabilities in place
Following widescale regulator change in the industry, our client (a FTSE 250 travel & leisure firm) was facing a 20% reduction in revenues from a significant portion of its business
Alongside changes to various products and propositions, the exec board identified a cost reduction target of c.£38m p.a. within 3 years in order to keep profitability and RoI at a level acceptable to the owners of the business. The scope of the challenge as directed by the CEO was ‘anything is possible’ – PEN needed to look at all cost levers in the P&L
In this case, prior to a detailed cost diagnostic, we helped the client run a workshop with all senior executive members, producing a shopping list of various cost reduction initiatives
We then reviewed these in detail using diagnostic tools over a 4 week period, working in collaboration with Group Finance teams
A final list of initiatives was then agreed, along with a delivery plan, and sponsors assigned to each workstream. Implementation then began
Efficiencies were delivered via the following:
Consolidated global footprint from 12 to 6 locations