Due Diligence
Your due diligence is probably wrongGlobal Advisors: a consulting leader in defining quantified strategy, decreasing uncertainty, improving decisions, achieving measureable results.
Our latest perspective - What's behind under-performing listed companies?
Outperform through the downturn
Experienced hires
We are hiring experienced top-tier strategy consultants
Quantified Strategy
Decreased uncertainty, improved decisions
Global Advisors is a leader in defining quantified strategies, decreasing uncertainty, improving decisions and achieving measureable results.
We specialise in providing highly-analytical data-driven recommendations in the face of significant uncertainty.
We utilise advanced predictive analytics to build robust strategies and enable our clients to make calculated decisions.
We support implementation of adaptive capability and capacity.
Our latest
Thoughts
Global Advisors’ Thoughts: Getting the Balance Right
By Kate Barnes
I am a working mother, as are many of my friends and past colleagues. Naturally we often debate the challenges of getting the balance between work and family right.
Personal circumstances vary widely and have a big impact on the choices one has, but my solution has been to work on a part-time basis. I have been lucky enough to do so for the past seven years and to me it seems like an excellent compromise. Yet there are many times when it feels like balance is the last thing I am achieving – in fact, I have the distinct feeling that I am failing on every front – my kids, my husband, and my boss, colleagues or direct reports, all want more of me.
Perhaps the truth is that I want too much. I want to be stimulated, challenged and to feel like I am adding value in the work place, but I also want to see my children more than the average, full-time working mother.
Many working mothers have made decisions involving changes to their working day in order to manage the work-family balance better. Unfortunately, I have found that one of the biggest issues is that one cannot simply decide on an approach, agree it with your employer, and then settle into whatever routine that entails. You might agree an arrangement to work 5, or 6 or 7 hours a day, or 30 hours a week, or to arrive at work early and leave by 3 or 4pm. But in most jobs, you will have to consider the balance equation on a daily basis, sometimes multiple times a day. Is today the day I give more to work because there is a demanding deadline and everyone else is working late, or is it the day I give more to my child, because he is receiving an award at school or swimming in a gala?
And often the call has to be made taking into consideration not only what is happening today, but also looking at where the pendulum fell yesterday, or last week, or over the past couple of weeks.
As with any decision there are consequences, even if at first they are unforeseen. In the early stages of my career, I like many, was an idealistic youngster with dreams of holding a very senior, leadership position. I was ambitious, and some might say that I had much of what it takes to achieve my goal. Some years down the track I was being interviewed for a prospective job and the potential employer noted from my CV that the achievements in my career (or lack thereof) were not in line with my academic record, and he wondered why this was. I can’t remember what my response was, but I know I knew the answer. I even knew at exactly which point in my career the upward trajectory slowed. It was the day I was working at a large corporate, and I asked for flexitime. I negotiated that on two afternoons a week, I would be allowed to leave at 2pm and I would make up the time in the evening, after my young children were asleep.
Shortly thereafter, when a potential internal move to a new position was being discussed I was informed that I could not be considered for the role as I was “part-time”.
This was a wake-up call.
Read more at http://www.globaladvisors.biz/thoughts/20170719/getting-the-balance-right/
Strategy Tools
Strategy Tools: Profit from the Core
Extensive research conducted by Chris Zook and James Allen has shown that many companies have failed to deliver on their growth strategies because they have strayed too far from their core business. Successful companies operate in areas where they have established the “right to win”. The core business is that set of products, capabilities, customers, channels and geographies that maximises their ability to build a right to win. The pursuit of growth in new and exciting often leads companies into products, customers, geographies and channels that are distant from the core. Not only do the non-core areas of the business often suffer in their own right, they distract management from the core business.
Profit from the Core is a back-to-basics strategy which says that developing a strong, well-defined core is the foundation of sustainable, profitable growth. Any new growth should leverage and strengthen the core.
Management following the core methodology should evaluate and prioritise growth along three cyclical steps:
Focus – reach full potential in the core
- Define the core boundaries
- Strengthen core differentiation at the customer
- Drive for superior cost economics
- Mine full potential operating profit from the core
- Discourage competitive investment in the core
For some companies the definition of the core will be obvious, while for others much debate will be required. Executives can ask directive questions to guide the discussion:
- What are the business’ natural economic boundaries defined by customer needs and basic economics?
- What products, customers, channels and competitors do these boundaries encompass?
- What are the core skills and assets needed to compete effectively within that competitive arena?
- What is the core business as defined by those customers, products, technologies and channels through which the company can earn a return today and compete effectively with current resources?
- What is the key differentiating factor that makes the company unique to its core customers?
- What are the adjacent areas around the core?
- Are the definitions of the business and industry likely to shift resulting in a change of the competitive and customer landscape?
Expand – grow through adjacencies
- Protect and extend strengths
- Expand into related adjacencies
- Push the core boundaries out
- Pursue a repeatable growth formula
Companies should expand in a measured basis, pursuing growth opportunities in immediate and sensible adjacencies to the core. A useful tool for evaluating opportunities is the adjacency map, which is constructed by identifying the key core descriptors and mapping opportunities based on their proximity to the core along each descriptor. An example adjacency map is presented below:
Redefine – evaluate if the core definition should be changed
- Pursue profit pools of the future
- Redefine around new and robust differentiation
- Strengthen the operating platform before redefining strategy
- Fully value the power of leadership economics
- Invest heavily in new capabilities
Executives should ask guiding questions to determine whether the core definition is still relevant.
- Is the core business confronted with a radically improved business model for servicing its customers’ needs?
- Are the original boundaries and structure of the core business changing in complicated ways?
- Is there significant turbulence in the industry that may result in the current core definition becoming redundant?
The questions can help identify whether the company should redefine their core and if so, what type of redefinition is required:
The core methodology should be followed and reviewed on an on-going basis. Management must perform the difficult balancing act of ensuring they are constantly striving to grow and reach full potential within the core, looking for new adjacencies which strengthen and leverage the core and being alert and ready for the possibility of redefining the core.
Source: 1 Zook, C – 2001 – “Profit From The Core” – Cambridge, M.A. – Harvard Business School Press
2 Van den Berg, G; Pietersma, P – 2014 – “25 need-to-know strategy tools” – Harlow – FT Publishing
Fast Facts
The use of full absorption or average costing in asset-intensive industries with under-utilisation can lead to self-defeating pricing strategies
The use of full absorption or average costing in asset-intensive industries with under-utilisation can lead to self-defeating pricing strategies
- The use of full absorption or average costing in a manufacturing environment with under-utilisation can lead to self-defeating pricing strategies
- The increase in price to cover costs results in volume decreases – lowering factory utilisation and increasing unit production costs. This is the start of the utilisation-pricing “death spiral”
- Costing according to factory utilisation – partial absorption costing – offers the opportunity to be more strategic about costing and utilisation
- “Unabsorbed” costs can be targeted through OEE and volume improvements. At the same time, the “disadvantage” of having a large factory is normalised and pricing can compete with more fully-utilised factories
- A recent manufacturing client saw 60% of unit costs arise from factory under-utilisation – sub-optimal OEE levels (non-conformance), low volumes and work-centre bottlenecks contributed to the utilisation gap
- These principles can apply to any asset-intensive business – for example banking
Selected News
Quote: Edward Rickenbacker
“I can give you a six-word formula for success: Think things through—then follow through.” – Edward Rickenbacker
Polls
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.
Services
Global Advisors is different
We help clients to measurably improve strategic decision-making and the results they achieve through defining clearly prioritised choices, reducing uncertainty, winning hearts and minds and partnering to deliver.
Our difference is embodied in our team. Our values define us.
Corporate portfolio strategy
Define optimal business portfolios aligned with investor expectations
BUSINESS UNIT STRATEGY
Define how to win against competitors
Reach full potential
Understand your business’ core, reach full potential and grow into optimal adjacencies
Deal advisory
M&A, due diligence, deal structuring, balance sheet optimisation
Global Advisors Digital Data Analytics
14 years of quantitative and data science experience
An enabler to delivering quantified strategy and accelerated implementation
Digital enablement, acceleration and data science
Leading-edge data science and digital skills
Experts in large data processing, analytics and data visualisation
Developers of digital proof-of-concepts
An accelerator for Global Advisors and our clients
Join Global Advisors
We hire and grow amazing people
Consultants join our firm based on a fit with our values, culture and vision. They believe in and are excited by our differentiated approach. They realise that working on our clients’ most important projects is a privilege. While the problems we solve are strategic to clients, consultants recognise that solutions primarily require hard work – rigorous and thorough analysis, partnering with client team members to overcome political and emotional obstacles, and a large investment in knowledge development and self-growth.
Get In Touch
16th Floor, The Forum, 2 Maude Street, Sandton, Johannesburg, South Africa
+27114616371