PCG | Pacific Consulting Group

Case Studies

What is the role of the corporate centre?

Companies are in a state of perpetual structural flux, resulting in the increased need for engagement on organisational redesign. As part of those organisational design decisions, determining which role the corporate centre should play can add significant value to an organisation. This must be balanced against the risk that the consequence of the centre playing the wrong role can be dire and lead to negative and sustained impact on the bottom-line. The corporate centre does not have to select a single role to apply uniformly across all business units or functions. It should instead select the role that matches the organisation’s unique situation and will generate the most value. We look at the how a corporate centre can adapt the role it plays across various business functions.

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Foresight from hindsight

In a working environment where job tenures average around five years to 10 years, the likelihood of losing experience is high. Without that experience, it is more difficult to ensure better judgement in decisions. The value of applying good judgement early in projects will always vastly outweigh the benefit of doing so later on or not at all. Companies can only guarantee future benefits from past experiences if they: Embrace a culture of learning from those experiences, have a framework for formalising the process and the correct systems in place to support this process.

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How do we get ready for a dimensional profitability model?

Most freight and logistics companies know the importance of understanding the profitability of their products, customers, and operations at a granular level. There’s good reason for this. Freight and logistics companies know that size and complexity of their customer base and operations provides ample opportunities for inefficiencies and unprofitability to hide. Our work at PCG with hundreds of companies across logistics and other sectors has helped them navigate the road to a granular understanding of profitability, and shown them how to use these insights to significantly increase revenue and yield, reduce costs, and improve productivity. Many of our clients have witnessed the power of the virtuous cycle from a DPM process. Having directed or supported DPM engagements of all kinds, including turning around those endeavours that have stalled, PCG has identified many of the reasons why some profit model projects deliver significant results and others fail to make an impact. We have codified these learnings into an end-to-end DPM process.

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