Project outline

• The client, a leader in the field of communication, had taken a minority stake in a company for 3 years (strong synergies at the commercial level, complementarity as a strategic asset).
• Faced with the company’s declining results (sales and profitability), which were far from the initial business plan forecasts, and questioning the appropriateness of taking a majority stake, the client asked Pagamon to carry out a management and managerial review of the potential target in order to support its decision-making process.

Project approach

• The review of the existing documentation and the twenty or so interviews conducted with the target’s operational and managerial teams enabled the project to be carried out in a very short time (4 weeks).
• The management diagnosis focused on the target’s strategy and its operational implementation:
  • Strategy, product plan, business plan.
  • Customer portfolio, contracts and business.
  • Annual budget and KPIs.
  • Governance and internal decision making within the company.
• The managerial diagnosis focused on the development and management of the target:
  • Value chain in its governance and decision making aspects.
  • Project management and documentation methods, quality assurance.
  • Critical skills and know-how, key people (evaluation | retention), subcontracting.
  • Partnerships and alliances.
  • IP (patents and trademarks).
• The definition of priority actions was based on the analysis of the gap between the initial strategic vision and the economic reality to date in order to correct the gaps (scope of the transformation).

Results

• Recommendations for the evolution of the target’s operational model to the client’s Management Committee (subsidiary of a large group).
• Recommendations for the evolution of the partnership governance between the client and the target (based on the history of the previous 3 years).
• Identification of non-strategic investment areas in order to facilitate downsizing and strategic reorientation.