Client Situation
The client is a leading integrated travel services company in India offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Value Added Services, Visa & Passport services and E-Business. They had developed a business strategy that needed validation with the organization’s strategic objectives to ensure successful execution.
Cedar’s Approach
The primary objective of this project was to review the client’s business strategy and develop a best-in-class Balanced Scorecard to align the organization’s strategic objectives, measures & initiatives. Following were the activities conducted by Cedar:
- Holistically evaluated the business by reviewing internal documentation, performing qualitative and quantitative interviews with senior executives
- Critically analyzing the relevant markets the client is involved in: Travel, Foreign Exchange & Financial Services
- Conducted an internal assessment of the financials, customers, operational processes and the organizational and IT strategies of the business as a whole, as well as each of the three independent business segments
- Conducted an in-depth SWOT analysis to determine the strengths and weaknesses of the client and to identify potential opportunities and threats that lie ahead
- Narrowed down key issues with the highest impact using the internal assessment and SWOT analysis
- Created the client’s Balanced Scorecard to identify critical organizational and internal process objectives, to ensure delivery of financial and customer objectives
Outcome
Cedar’s thorough analysis revealed several gaps for operational improvement. Some of these observations were as follows:
- Direction of focus on high margin businesses could help meet shareholder expectations
- Identification of potential to improve collections in corporate travel which is a low margin business
- Observed need for a cost consciousness culture to control inflated costs caused by very high working capital expenditure
- Strategy focus needs to be shifted from operational processes to customer satisfaction
- Need to fasten ties with existing corporate clients and better focus on corporate business development to tackle declining corporate clients
- Need to create an improved distinguished service offering for corporate clients
- Need for implementation of a key account management system to track sales and identify opportunities for up-selling and cross-selling
- Physical distribution channels for the Foreign Exchange business must be strengthened further as the location is a key factor affecting sales
- Primary research revealed a lack of uniformity in service standards across branches
- Multiple structural issues between functions in the travel work-stream leading to unrealized synergies
- Technological infrastructure met current requirements, but was not well suited to adapt to future needs
- Standardized training workshop needed to improve front office client engagement and indirectly boost sales and revenues