Unlocking over £20m in increased gross margin at a major health insurer
The issue
- Shrinking customer base
- 13 legacy books and numerous policy variants causing customer and staff confusion
- Operationally complex to manage – high cost to serve
- Existing proposition and pricing created trigger points for customer exit
- Customers not segmented by value
- No differentiated renewal or save strategies
- Not pricing for risk or maximised value retention
- Poor customer journey: passed from function to function, advisors not empowered
What we did
Designed & executed a pricing, product and service migration of all policyholders to one new modular product
- Developed new proposition which drove retention of high value customers and higher return from lower value customers
- Built in upgrade/downgrade ‘right-size’ choices to mitigate competitor switching
- Created pricing engine enabling all business to move to NCD-based policies and set renewal premiums to optimise gross margin
- Cut expected IT lead time to launch from 12 to 3 months
- Changed customer communications and management processes to de-risk customer disruption & loss
- Engaged Legal and regulator on ‘automatic renewal’ plans throughout
- Piloted the transition on 2 highest lapse-risk books to ensure error-free process and no adverse increase in lapse rates
The results
- Exceeded the £20Mpa gross margin improvement target
- Reduced customer loss by 25%
- Improved operating cost ratio from 30% to 16% with greatly improved IT flexibility
- Excellent customer and FSA feedback
- Successfully rolled out from personal to SME & Group schemes
What our clients say
“As a result of Curzon’s support a strategic and digital leap has been made in how we manage the entire asset lifecycle to transform our Developer Service experience. This is a programme and a product that sets a new benchmark within the industry.”
Jason Tucker
Director of Alliances & Integrated Supply Chain, Anglian Water
An award-winning team
CONTACT US TO FIND OUT HOW WE CAN HELP
Performance turnaround at global construction product manufacturing group
The issue
- A European headquartered global construction product manufacturing & distribution group with a C. and S. American Division located across 14 countries
- The Division was consistently the worst performing business unit in the Group
- Interventions from Europe had failed to address the issues and turn performance around
- Performance was poor with an EBITDA generation significantly lower than the Group average
- Underperformance was a consequence of a multitude of issues: poor sales disciplines, inefficient production, lack of adequate cost management and ineffective leadership
- Previous attempts to turn the business around with other consultancies had failed
- The challenge was not only to quickly improve performance, but to set up the business for sustainable profitable growth
What we did
- With our Alliance Partner for C. and S. America, Curzon established a programme team to implement a comprehensive change effort
- A focus on commercial performance including pricing management and product mix optimised the market opportunities and stopped margin give-away
- Introduction of lean practices in manufacturing and distribution facilities improved productivity and started to tackle excess inventories
- Organisational changes were made to reduce management overheads and to streamline support functions
- Initiatives were piloted in country businesses and the learning was transferred to other business units through a centrally managed process to coordinate and accelerate the impact
The results
- Within one year the division rose from the worst to the best performer in the Group
- The combination of programme and other initiatives were delivering measurable bottom-line savings with a headline profitability run-rate that had tripled
- Change was happening on a broad base and over 1000 staff across multiple countries were involved improving the business
- Capability development and introduction of new tools, disciplines and ways of working had provided a solid platform to sustain the results
An award-winning team
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Company-wide performance improvement at UK water utility
The issue
- Ineffective incentive structure resulting in organisational silos & sub-optimal performance (in-house and contractors)
- Limited long-term planning and investment as result of weak and inaccurate in-house Asset Knowledge
- Legacy support services from merged smaller companies resulted in fragmented internal processes
- Lack of job prioritisation and adequate planning leading to poor productivity & rework
What we did
- Development and introduction of single performance management framework and incentive system to drive efficiency and customer focused culture
- Implementation of an Asset Capability Centre focused on three capability areas: Physical Asset Management, Stewardship & Delivery; revalidated proposed Capex and ran adaptive approaches on costs
- Implemented regulatory compliant Shared Services with revised governance, improved service levels and cost efficiencies
- Redesign and implementation of new job initiation, planning and scheduling processes
The results
- 20m annualised improvement in Totex
- Annualised Capex avoidance of c£18m throughout the regulatory period
- Annualised Opex reduction of c.£3m
- 25% reduction in shared service cost base
- 20% productivity increase in Field work, 30% increase in RFT and 10% reduction in Customer Complaints
£20m
annualised improvement in Totex
£18m
annualised Capex reduction
c£3m
annualised Opex reduction
25%
reduction in shared service cost base
20%
productivity increase in Field work
10%
reduction in customer complaints
An award-winning team
CONTACT US TO FIND OUT HOW WE CAN HELP
Change management optimisation at a UK retail bank
The issue
- Unprecedented customer growth & branch expansion coupled with focus on improving service delivery and customer satisfaction placed pressure on our client to deliver greater and more complex change
- A need to improve the architecture and governance of business process change
- To ensure change management is ready and optimised for successful delivery of current and downstream change demand
- Rapid growth brought complexity & uncertainty
- There was a need for tightly defined governance mechanisms supported by a standardised way to adhere to change
What we did
- Designed framework for a multilevel business change process architecture to facilitate effective governance
- Translated the framework into a new change management model with new working practices & Balanced Scorecard
- Consistent communication and deployment in line with organisation’s need
The results
- Building blocks in place for bank to deliver its growth strategy securely
- Reduced change backlog
- Change management framework to drive sustainable change and maximise results implemented across bank operations
- Agreed metrics/KPIs at selected organizational levels including baselines and targets
What our clients say
“As a result of Curzon’s support a strategic and digital leap has been made in how we manage the entire asset lifecycle to transform our Developer Service experience. This is a programme and a product that sets a new benchmark within the industry.”
Jason Tucker
Director of Alliances & Integrated Supply Chain, Anglian Water
An award-winning team
CONTACT US TO FIND OUT HOW WE CAN HELP
Improving customer satisfaction at a leading retail and commercial bank
The issue
- Continuing declines in NPS and CRI scores across retail and commercial customer bases
- Board’s ambition was to achieve market-leading customer recommendation levels
- Ongoing customer service challenges driving up customer dissatisfaction ― but unclear as to true extent and causes
- Big gaps between customer expectations and delivery
- True extent of customer dissatisfaction not identified or addressed, and NPS surveying not used to mine for triggers. 40% of customers thought they had complained vs 4.5% recorded
- Reality was 45% of customers who’d formally complained were dissatisfied with complaint resolution, making them far more likely to churn (62%)
What we did
Designed & executed a pricing, product and service migration of all policyholders to one new modular product
- Worked across retail and commercial banking operations to understand and map impacts of service failures and complaints response on NPS and CRI scores
- Identified biggest linkages between types of service failure, quality/ timeliness of complaint resolution, and the creation of Detractors
- Surfaced major under-reporting of complaints and inaction where known detractors continued to be detractors
- Developed set of targeted remedial actions to apply at point of service failure or complaints to prevent creation of detractors or convert them into neutral/advocates, minimising risk of eventual lapse
- Defined how to cost-effectively and proactively pinpoints and stop service failures occurring
- Designed operational changes in four customer management areas across Retail & Commercial Banking to reduce service failure and complaints volumes and costs
The results
- Recommendations agreed by both divisions
- Transition plans delivered
- ExCos in implementation
- Reported improved NPS & satisfaction rate scores
- On-target run-rate cost reduction benefits
What our clients say
“As a result of Curzon’s support a strategic and digital leap has been made in how we manage the entire asset lifecycle to transform our Developer Service experience. This is a programme and a product that sets a new benchmark within the industry.”
Jason Tucker
Director of Alliances & Integrated Supply Chain, Anglian Water
An award-winning team
CONTACT US TO FIND OUT HOW WE CAN HELP
Increased operating profit at glass manufacturer
The issue
- Our client, a manufacturing site for automotive glass had struggled to break-even through four years of plummeting demand
- The site’s future was in doubt unless it could quickly demonstrate growth in efficiency and competitiveness
- Cultural resistance to change
- Strain on production teams
What we did
- Operational analysis identifying where, why & how greater efficiencies were achievable
- Designing & managing transformation pilot, measuring effectiveness
- Prioritised roll-out, training & robust project governance
- Worked with management to embed leadership skills & capabilities
The results
- Our work delivered benefits exceeding €10m annualised operating profit & €20m working capital reduction
- We helped our client become a Group-wide exemplar of best operating practices and re-establish its position as a market leading producer
- The transfer of crucial capabilities to the local team has enabled sustainable change
- San Salvo is now a credible, long term engine of growth
- Our work was awarded “Highly Commended” at the MCA Awards for Change Management in the Private Sector
What our clients say
“As a result of Curzon’s support a strategic and digital leap has been made in how we manage the entire asset lifecycle to transform our Developer Service experience. This is a programme and a product that sets a new benchmark within the industry.”
Jason Tucker
Director of Alliances & Integrated Supply Chain, Anglian Water
An award-winning team
CONTACT US TO FIND OUT HOW WE CAN HELP
Delivering a step change in operational performance
The issue
- Four factories on one site producing 60% of the company’s European demand for the Automotive market
- Utilisation and performance had been in steady decline for four years and with very poor customer delivery and service performance this was seen to be a failing site
- Local custom and practice was inhibiting opportunities to improve productivity
- Curzon was engaged to help the Site Director achieve control and turn performance around
- The site was achieving less than 60% OEE on its premium integrated lines
- High inventories but of the wrong products due to lack of control of demand and production priorities
- No performance management system in place to drive improvement
- Disconnected Planning and Production functions causing late delivery and high costs
- Limited management capability and lack of proactive supervision
What we did
- Create an overall approach to transform the performance of the site involving all of the management team
- Implement a cross-functional planning process and tools e.g. production wheels to establish a clear view of demand, delivery priorities and factory capability to deliver
- Implement Lean capabilities on the shop floor e.g. SMED techniques, SIC and Kaizen to improve productivity and develop a sense of ownership
- Selective capital investment in facilities (underway)
- Implement visual performance management and supporting proactive supervisory/management processes
- Build the capability of the local team to ensure sustainability
The results
- Achieved in excess of 25% reduction in inventories and a significant uplift in on time delivery to distribution centres
- Improved OEE on key integrated lines by over 20%, increasing capacity and enabling transfer of work from less productive sites
- Built the capability of the client team to be able to complete the programme rollout successfully themselves and to sustain the initial improvements
- Created a blueprint that can be rolled-out to other sites globally
What our clients say
“As a result of Curzon’s support a strategic and digital leap has been made in how we manage the entire asset lifecycle to transform our Developer Service experience. This is a programme and a product that sets a new benchmark within the industry.”
Jason Tucker
Director of Alliances & Integrated Supply Chain, Anglian Water
An award-winning team
CONTACT US TO FIND OUT HOW WE CAN HELP
Improving yield management at a travel & leisure operator
The issue
- A leading leisure travel group needed to make a change in Yield Management practice to optimise commercial outcomes
- Profitability under strain due to increased competition and uncertain market conditions
- A complex and out of date system eroded trust in Yield Management practice
- Limited understanding of commercial impact of pricing decisions and a lack of operational control
- No alignment behind informed vision to guide the development, deployment and industrialization
- Capability gaps
- Siloed understanding of the potential impact of digital technologies
What we did
- Market analysis
- Developed strategy & analytical model to explore critical aspects of Yield Management Operating Model
- Developed blueprint roadmap to deliver vision & clear programme structure
- Business transformation
- Executive coaching
- People & culture change
- Flexible approach enabled client to retain ownership
The results
- Estimates over next four years indicate cumulative improvements in gross margin, uplift in aircraft utilisation & increase in spend per customer
- Improved cross-functional collaboration
- Uplift in gross margins for last season
- Commercial mindset taking hold in organisation
What our clients say
“As a result of Curzon’s support a strategic and digital leap has been made in how we manage the entire asset lifecycle to transform our Developer Service experience. This is a programme and a product that sets a new benchmark within the industry.”
Jason Tucker
Director of Alliances & Integrated Supply Chain, Anglian Water
An award-winning team
CONTACT US TO FIND OUT HOW WE CAN HELP
Capturing a greater share of the general aviation value chain
The issue
- An inherent lack of commerciality where services were being provided to incumbent FBO at no cost
- A lack of understanding of customer requirements
- A high operational cost was carried to manage changing customer needs & poor pilot & broker practices
- Customers transit through the airport was poor & the lounge & facilities provided were outdated
- Other airports were capturing market share by offering a superior service offering
What we did
- Smarter commercials & charging for service identified for revenue growth i.e. Marshalling
- Affiliated 3rd parties identified to provide onward travel & concierge services along with proposing a discrete duty free offering
- Levying cancellation charges when appropriate to drive improved customer behaviour
- A customer journey redesign to address concerns & recapture market share
The results
- Within 4 weeks the project identified growth opportunities to double existing revenue & double the share of the value chain
- The future strategy proposed changes to existing practices and partnerships
- Redefined customer proposition was suggested to maximise revenue & improve customer experience
An award-winning team
CONTACT US TO FIND OUT HOW WE CAN HELP
Operating model refinement and commercial focus to deliver a step change in business performance
The issue
- A subsidiary of a global defence company, providing technology-based R&D solutions and advisory services to government and defence organisations and private sector companies at the cutting edge of secure communications and cyber warfare
- Despite repeated calls by Group to improve, the business continuously failed to meet performance expectations on revenue growth, profit margin and free cash flow
- The business was suffering from an overly-layered and siloed organisation structure, with burdensome management processes and lacking commercial focus
- The underlying issues were structural and an absence of effective performance management, wrongly being justified because business discipline would stifle creativity and innovation
Solution
- Undertook a business-wide design and business case development stage to anchor the current performance failings and the required changes
- Implemented over a 12-month period working alongside the business unit leadership with a structured plan;
- A new leadership team established, with stronger governance processes, metrics, and proactive staff engagement
- Simplified the operating model and aligned capabilities to market needs
- Re-framed value propositions and initiated the move into critical national infrastructure
- Implemented resource management to drive productivity uplift
- Implemented new mentoring and HR processes to underpin talent management
- Supported post-implementation by refreshing the plan
The results
- 29% revenue uplift (versus budget target)
- 18% Return on Sales achieved versus a 15% target for the financial year
- 90% improvement in business cash flow
- 10% points increase in Engineer productivity, with a continued increase to 74% utilisation in year 2, and climbing
- Transformed the operating model and business culture to be customer and commercially focused
- Established performance management at the business and individual level
- Underpinned changes with disciplines, governance, reward structures and visibility
- The Project won the Management Consultancy Association’s award for “Performance Improvement in the Private Sector” with full sponsorship of the client
An award-winning team
