Together with the client organization, we developed a 3–5-year growth strategy that enabled a large inter-dealer broker to remain relevant in a rapidly changing market.
A leading inter-dealer broker, operating across a range of asset classes, was seeing shrinking revenue pools in its core business. We were engaged by the CEO to develop a 3–5-year growth plan with the aim of bringing all business units together under one common strategy and outlining a way forward that would reverse the declining revenue trend.
By pursing a co-creation approach with the client, we designed and facilitated a series of working sessions and exercises (such as "stretch" scenarios) that foster creativity and unconstrained thinking. To support this approach and detail the strategy, we created the Transformation Hub – a purpose-designed space, which enabled areas of misalignment to surface and created the right working environment to foster collaboration and innovation. Our industry experts in both business and functional areas guided the process and provided challenge and insight in working sessions.
Oliver Wyman's approach to strategy development
Source: Oliver Wyman analysis
Over the course of about 10 weeks, strategies were built up for each business line and ultimately aggregated into an overall narrative and journey. Two offsite events were held during the process, each with the top 30 leaders from across the business lines, to challenge each business unit's strategy and ensure that it was aligned with the overall vision. Finally, to guarantee engagement and buy-in from the board of directors, we prepared and facilitated four interactive strategy board days.
We have involved numerous different parts of the business. We have had open and frank discussions on what we want to do and how we’re going to do it. This coming together and alignment of the group has been the most important thing to drive real ownership for the transformation.Executive Comittee Member
Defining the strategy was the first step. In order to ensure execution, through the Transformation Hub we also supported the client to structure the implementation program and mobilize all workstreams. Here we worked alongside client teams for the initial stages of the implementation effort.
The project created a compelling narrative and detailed business strategy, from vision and ambition through to detailed plans and technology requirements. By aligning the approach across organizational siloes, business divisions, functions, and regions, the entire organization was engaged and took ownership of the final result.
Together with the client, we identified additional revenue potential of approximately £1 billion by 2025, and potential for a two- to threefold upside in valuation. The biggest differentiator for them was the collaborative engagement at all levels of management, rather than at the very senior level.Rupert Harrison, Partner Corporate & Institutional Banking
Following project completion, the client had a clear five-year business strategy and “single point of truth” product manuals, underlying divisional strategies and the steps required to mobilize and implement strategic initiatives. The client also achieved stronger cohesion between its business lines thanks to the co-creation approach. Finally, in terms of quantified financials, we estimated that, if successfully implemented on time, this strategy would deliver approximately a 100% increase in earnings and a threefold increase in market valuation over a five-year horizon.