Assisting a Regional Diversified Group in Formulating Corporate and Business Units' Strategies

For a leading and diversified Family-Owned Group with local and regional operations, NECG was engaged to assist the Executive Board (1) in formulating Corporate and Business Unit Strategies and (2) in improving Governance in the Group by helping the Executive Board to clarify and fully endorse its role.

In order to conduct its mission, NECG divided the project in two phases:

  Phase I was aimed at assisting the Executive Board in   setting a strategic Direction for the Group’s Sectors 
  and for each Sector’s Companies.
  During this phase, NECG engaged in performing the following:
Set the ground for preparing Sectors and Companies Strategic Documents:
o Understand Shareholders’ and Board od Directors' expectations;
o Achieve a basic understanding of each Sector;
o Develop a guideline / template to assist Sector Heads in developing Strategic Documents for their affiliates (Product / Market description, Product / Market segmentation, Competitive analysis, Bottlenecks, Opportunities for the next 3 years, Growth drivers in the existing business, Risks, Decisions / Actions needed from the Board of Directors, etc.);
o On an “as needed” basis, meet with Sector Heads & General Managers to assist them in developing their Strategic Documents;
o In parallel, NECG conducted a detailed financial analysis for the past 5 years for each company (liquidity / cash ratios, profitability ratios, operating indicators, assets management ratios and leverage ratios);
o Perform a detailed analysis of the Group’s Companies portfolio in terms of strategic significance, performance, risk and degree of need for Board intervention;
Translate the findings of the above into Strategic Directions that the Board communicates to Sectors’ Heads and Companies General Managers;
Be available, on demand, to support each Sector Head to translate Strategic Directions set by Board into concrete strategy and action plans.

Phase II was aimed at assisting the Board in following-up on the strategy implementation; NECG engaged in conducting the following:
Assist the Board in reviewing and validating Sectors’ and Companies’ action plans;
Develop consolidated Road Map for all Sectors and Companies;
Set follow up mechanisms for the Board of Directors;
Conduct the first progress review meetings with the Board.