Technology that Transforms the Passenger Experience
P&C helped develop an award-winning brand refresh and onboarding process—from health screening to country-specific COVID requirements, and the technology platform to execute this strategy.
Tag: Organization & Human Capital Practice
Sonic Brand Welcomes Passengers Onboard
As part of Singapore Airline’s brand refresh, P&C collaborated with its client to develop a sonic companion to its visual brand.
Visual Brand Captures a Nation’s Legacy
P&C worked in partnership with Singapore Airlines to refresh the airline’s visual brand, inspired by the rich heritage of a nation. The new logo alludes to the country’s garden city heritage and transports it into the future.
Architecting an Airline Fleet for Sustainable Competitive Advantage
Informed by considerations including infrastructure compatibility, fuel efficiency, seat capacity, and supply chain flexibility, P&C worked with this client to build a fleet optimized for its network, compelling to passengers, and flexible enough to absorb shocks such as COVID-19.
Turning Losses Into Profits for a Global Apparel Retailer
Global Apparel Retailer
Turns Losses into Profits
By Updating Branding & Merchandising Strategies
Plummeting profits jeopardized a high-end apparel retailer’s ambitious growth strategy. P&C helped its client develop an aggressive turnaround plan that aligned branding and merchandising strategies across its retail channels, streamlined and improved inventory management and ensured that it designed and stocked popular products with high margins.
P&C Helps This Retailer Accelerate Growth by Focusing on High Profitability Products & Upgrading Its Fast Fashion Brand Image
The new leaders of this multi-brand clothing and accessory retailer, known for its legendary brands and global footprint, hoped to accelerate growth by expanding into adjacent areas and extending its retail network. But with profits plummeting by 90 percent, they recognized the need to strengthen branding and inventory management while reducing costs to achieve its ambitious growth strategy.
Working with the firm’s CEO, P&C developed a comprehensive turnaround plan that included short-term profit gains and long-term initiatives for sustained growth. We aligned branding and merchandising strategies, focused product development on items with high profitability for both its retail and catalog outlets and ensured organizational support. We also redesigned their inventory forecasting models, supply chain, and inventory management systems to improve efficiency and better meet customer demand.
To achieve over $400 million in annual profit improvements, P&C helped this company launch initiatives to increase overhead savings, boost its brand image, eliminate less profitable brands and products, and introduce a new “look” for its highest margin, fast fashion brand.
With improved inventory controls and product development, this retailer can stay ahead of trends, fueling faster growth. Our turnaround plan successfully reversed return on equity from a loss to a 6X increase.
*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.
Outsourcing Focuses Tech Company on Its Core
Tech Company
Achieves Significant Cost Savings
By Adopting a Stringent Outsourcing Strategy
A technology company that had experienced massive revenue and share loss in the previous 3 years sought P&C’s help implementing a transformation program with a stringent sourcing strategy. P&C evaluated outsourcing options for business processes and IT and made recommendations that achieved $85 million in annual cost savings for the company.
P&C Helps This Client Focus on Core Competencies & Determine Outsourcing Opportunities
Our Tech Company client had experienced massive revenue and share loss during the previous three years, though the company had conserved cash through significant cost reductions. Management developed an ambitious strategy to transform the company by refocusing the organization on core competencies.
The P&C team provided solutions to the following questions:
- What should be considered for outsourcing?
- What’s the best end-game option (best-in-breed vs. one-stop)?
- How do we rush through Request-for-Proposal (RFP) and negotiations without leaving money on the table?
The sense of urgency was high because our client needed to sign a contract in less than 9 months; however, there were a number of complications:
- The company was completely vertically integrated for core products
- An “I don’t trust foreigners” mentality prevailed
- 75% of the executive team were new to the job
- Many in the company were skeptical of outsourcing due to past failures
- The client was in the midst of a transformation of its business model
P&C Considered the Outsourcing Potential Along Its Client’s Value Chain & Used a Systematic Approach to Evaluate the Sourcing Potential for Each Division
- Operations (engineering, procurement, manufacturing)
- Customer service and support (CS&S)
- Warranty and repair
- Support functions such as Finance and Accounting (F&A), HR and IT
-
Set Strategy & Key Success Factors
- Understand client strategy and resulting market positioning
- Determine factors key to successfully implementing strategy
- Understand management’s goals on the company’s future
-
Diagnose Internal Activities
- Create detailed process maps of activities under consideration
- Proceed along the company’s value chain, division by division
- Evaluate each activity against industry benchmarks
-
Map Activity Strength & Strategy
- Evaluate importance of achieving key success factors
- Map against performance against industry competitors
-
Filter Against External Market
- Determine if external market exists
- Define set of potential sourcing partners
- Assess risk of utilizing external market
- Evaluate in-house solution, based on management-initiated turnaround strategy
-
Develop Sourcing End State
- Develop action plan by and across activities
- Assess high level organization impact
- Objectively compare in-house vs. outsourced solutions with respect to risk/reward
Our Recommendations
Vendor Identification & Selection
- Launch request for information (RFI) and thorough RFP process
- Select potential suppliers based on agreed-to criteria developed with the client’s key stakeholders
Deal & Contract Negotiation
- Execute thorough due diligence
- Build base case model, normalize bids, and ensure price flexibility
- Develop and negotiate service level objectives and service level commitments
- Start deal promptly to stay within requested nine-month timeframe
Transition and Migration
- Maintain focus on day-to-day responsibilities
- Align organization with outsourcing effort
A Few Basic Takeaways Proved to be Essential:
- Ground sourcing in company strategy
- Determining relative performance
- Assessing external market opportunities
- Investing in a robust, multi-sourced RFP process
- Addressing implementation issues early
Within 9-Months, P&C Created Significant Value For Its Tech Client, Totaling ↑75X P&C’s Fees
- $8M in cost savings from IT outsourcing (ITO)
- $25M in a one-time asset impairment write-off
- $23M in cost savings from Business Process Outsourcing (BPO), including outsourcing 50% of Finance operations and 85% of Human Resources operations
- Service levels at or better than current levels, including continuous improvement efforts
*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.
A Fortune Global 500 Refines Strategy to Unleash Growth
Diversified Fortune 500
Unleashes Growth
With Tailored Strategies for Cash Cows, Tigers, and the Middle
We helped our diversified conglomerate client find new business opportunities, define strategies for the holding company’s smaller businesses, and clarify the strategic and operational role of the center.
P&C Helps This Fortune 500 Conglomerate Evaluate Its Portfolio of Companies to Align with Its Profitability Targets
Our client owned many businesses in sectors that included industrial equipment, automotive components, major domestic appliances, commercial financial services, energy, and real estate development, among others. The company had diversified into several non-related businesses but had failed to achieve its profitability targets.
Its board of directors set a minimum return for all the companies in the portfolio, but many of them fell below their goals. P&C was brought in to help:
- Find a new business opportunity that could eventually replace the reliable cash generator (cash cows)
- Define strategies for the smaller businesses (tigers) so that they would either achieve their value creation objectives or be divested
- Clarify the strategic and operational role of the center to achieve overall growth
P&C Created a Framework for Each of 4 Challenges
Challenge I
Growth in New Businesses
Identify 2-4 profitable business opportunities similar in size to current cash cows
Challenge II
Sustainability of “Cash Cows”
Define strategies to continue milking businesses through turmoil and changes in industry
Challenge III
Strategy for “Tiger Businesses”
Programs to find strategic/operational improvements or divest money-losing businesses
Challenge IV
Improve Role of Center
Articulation of new strategy and corporate role
P&C Focused on Product Line Profitability to Determine Divestiture Targets
P&C’s first priority was to redesign the money-losing businesses, or tigers. Rather than divesting whole companies, we recommended that our client divest product lines. We also delivered detailed business plans for three new endeavors and a new corporate role.
P&C’s program resulted in a dramatic increase in ROIC—from 13% to 25% over two years. Our client is now working with us on adjacent business opportunities that we identified.
*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.
Appliance Retailer’s Performance Improvement Boosts Shareholder Value
Appliance Retailer
Boosts Shareholder Value
By Focusing on Execution, Simplification, and Strategy
Our high growth retail client experienced a significant share price decline after missing earnings expectations. We identified the company’s core strengths and performance improvement options. The resulting broad-based performance improvement program created $2.5 billion in shareholder value.
P&C Helps Its Client Take a Step Back to Realign Product & Pricing With Customer Strategy
Our retail client had enjoyed high growth and was planning to double its store count within 2-3 years, as well as increase diversification into new channels, products, and geographies. Unfortunately, they had failed to meet earnings expectations for the first time, causing a significant share price decline. Investors blamed a variety of factors including concept saturation and over-diversification.
P&C Worked With the Client to Address the Following Questions
- How do we identify, prioritize, and resolve execution limitations that are blocking our ability to rapidly grow?
- How can complexity be reduced to lower costs and grow the top line?
- What changes should we make to our product and pricing strategies to align with our customer strategy?
P&C Identified the Client’s Core Strengths Before Articulating Its Performance Improvement Options
P&C Launched a Broad Performance Improvement Program for this Retail Client
-
Revenue
Marketing/Product Development
- Consolidated and refocused marketing spend
- Targeted programs by segment to grow share of wallet and number of customers
- Reprioritized R&D pipeline
Organization and Staffing
- Restructured field front line management
- Created performance management and incentive system
- Optimized store level staffing by store type
Key driver of company store sales out-performance (~10% higher than retail industry average over multi-year horizon)
-
Product Costs
Sourcing
- Centralized procurement function
- Consolidated vendors
- Re-negotiated contracts
- Developed strategic supplier relationships
Drove $30M+ of annual savings after year one
Product Line Profitability
- Assessed true profitability of all store level SKUs
- Eliminated or re-priced 1000+ problem SKUs
- Rationalized R&D Spending
Drove $11M of annual savings
-
Store Operations
Labor
- Implemented store best practices
- Enhanced store labor productivity by eliminating admin work
- Increased store level automation
Saved $40M in annual labor staffing costs
Real Estate
- Redefined store “full potential”
- Assessed store portfolio and optimal real estate economics
- Improved efficiency in leasing, construction and repair and maintenance
20% annual R&M savings and a 5% increase in new store ROI
P&C’s performance improvement initiatives created $2.5 billion in shareholder value since the beginning of the relationship.
*We take our clients’ confidentiality seriously. While we’ve changed their names, the results are real.
Connecting the Globe With an Efficient Fleet
An effective fleet management strategy is essential to success for a global airline. A modern, spacious, comfortable, and highly efficient fleet not only optimizes costs but also vital to the many factors that lead to optimized revenues and an expansive global network. An effective fleet management strategy enabled our client to take advantage of the Airbus A350, powering their network expansion to new International routes such as this one to San Francisco.
Integrating Credit Decisions With Environmental Sustainability Goals
We believe business goals must be closely aligned with broader societal objectives such as environmental sustainability. With this client, we adopted and implemented the Poseidon Principles to foster the decarbonization of global shipping through credit decisions.
Recruiting a Global Workforce for Careers in the Hospitality Sector
Given the stringent demands for recruiting a global diversified guest services workforce, we partnered with this client to position them as a preferred employer for pursuing meaningful and rewarding careers.
Inclusive Governance: Establishing an Employee-Driven Diversity Board
We and our clients value diversity, and invest in mechanisms to achieve it; here, a Diversity Board provides employees a direct voice in driving towards a more inclusive culture.
Merchandising During a Pandemic: Promoting Product Experiences via Social Media (Self Care)
To engage emerging demographic segments and demonstrate products as the gateway to meaningful experiences even during COVID-19, this innovative social media campaign featured celebrities and influencers using everyday items in their homes.
Merchandising During a Pandemic: Promoting Product Experiences via Social Media (Tie-Dye)
To engage emerging demographic segments and demonstrate products as the gateway to meaningful experiences even during COVID-19, this innovative social media campaign featured celebrities and influencers using everyday items in their homes.
Merchandising During a Pandemic: Promoting Product Experiences via Social Media (Painting)
To engage emerging demographic segments and demonstrate products as the gateway to meaningful experiences even during COVID-19, this innovative social media campaign featured celebrities and influencers using everyday items in their homes.
Training and Development a Priority
To maximize long-term success, P&C works with clients to build their pipeline of talent, instituting learning and development programs with significant benefits for growth and retention.
Articulating the Story of a Global Luxury Brand is Vital for Building Enduring Customer Loyalty
Especially for luxury brands, their positioning, image, and relationships are crucial considerations. This campaign showcases their portfolio of companies which mutually reinforce each other and the legacied icons of the umbrella brand.
Expanding a Brand Identity to Promote Healthy Lifestyles: Pandemic Response
As a natural extension of this client’s home appliance brand to support healthy living, we developed this campaign to also combat the spread of COVID-19.
Role Models for Diversity and Inclusion
We believe Diversity and Inclusion is an essential element for any large organization to really succeed in this ever changing world. Here, a global law firm client highlights example leaders within their firm who are spearheading this mission.
Differentiated Product Development and Launch: AeroPerfect Fan Ovens
P&C worked with this client to create a portfolio of sustainable and innovative products from customer insights research, design, engineering, and manufacturing all the way through to marketing, distribution, and support. This video, for example, features an advanced air flow technology for ovens.
Goldman Sachs: Day in the Life
Particularly for professional services organizations such as Goldman Sachs, human capital is of the utmost concern. Here, we engaged with them to maximize their ability to attract top tier talent across a broad array of candidate segments.
Core Capabilities for Pandemic Retailing: Contactless Same Day Delivery
Another emerging requirement for retailers accentuated by the pandemic is the ability for customers to obtain prompt, convenient, and safe delivery of merchandise, as we demonstrate in this video.
Core Capabilities for Pandemic Retailing: Curbside Pick-Up
The COVID-19 pandemic has placed a premium on several omni-channel retail capabilities; here, P&C partnered with this client to implement both the digital and physical components of curbside pick-up.
Inspiring Consumer Confidence During a Pandemic: An Essential Worker’s Perspective
In order to engage with consumers and highlight the efforts being made to ensure their safety during COVID-19, we worked with this retail client to profile the perspective of one of their essential employees.
Engaging Retail Consumers Regarding Pandemic Responses
To ensure the ongoing safety of both customers and employees, P&C helped this retailer clearly communicate their COVID safety protocols and capabilities.
Designing Partnerships that Deliver Results and Maximize Brand Loyalty
We are always on the lookout to forge new relationships which deliver innovative opportunities for our clients and their customers. This design partnership represents a marriage of legendary, impeccable brands.
Reconnecting with Global Travelers During the Pandemic
P&C has worked with travel and hospitality clients during the pandemic both regarding hygiene protocols such as ALLSAFE shown here, and to remind passengers and guests of the allure of travel.
Reconnecting with European Travelers During the Pandemic
P&C has worked with travel and hospitality clients during the pandemic both regarding hygiene protocols such as ALLSAFE shown here, and to remind passengers and guests of the allure of travel.
Procedures for Arriving Passengers at One of the World’s Top 10 Busiest Airports
Particularly with clients in the airline industry, P&C has engaged deeply to design and implement COVID-19 response measures. This video illustrates a variety of results including technology-enabled processes such as thermal scanning and policy-oriented ones such as testing and quarantine for arriving passengers.
When You Are Ready to Fly, We Are Here
For airlines such as Qatar Airways, our COVID-19 response engagements are necessarily holistic. We consider the end-to-end customer experience, and apply protocols grounded in science as well as cutting edge technology to maximize passenger safety and comfort.
Blending Safety and Style: Social Distancing
In response to the pandemic, we assisted this client to develop, implement, and uniquely communicate their adoption of a series of safety protocols such as glove usage, shown here.
Blending Safety and Style: Masks
In response to the pandemic, we assisted this client to develop, implement, and uniquely communicate their adoption of a series of safety protocols such as glove usage, shown here.
Blending Safety and Style: Hand Sanitizer
In response to the pandemic, we assisted this client to develop, implement, and uniquely communicate their adoption of a series of safety protocols such as glove usage, shown here.
Blending Safety and Style: Gloves
In response to the pandemic, we assisted this client to develop, implement, and uniquely communicate their adoption of a series of safety protocols such as glove usage, shown here.
In-Flight Passenger Experience Innovations to Ensure Health & Safety
Recognizing the degree of change impacting travelers during the COVID-19 pandemic, we partnered with this client to develop and launch the Wellness Ambassador role to ensure health and wellness throughout the customer travel experience.
Welcome Back Mandarin Oriental Hyde Park, London
Luxury hotels like their retail counterparts should reflect both their organizational brands and their local communities. Here, we blended the client’s reputation for five star service with an iconic London address.
LOCATIONS