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Changing Priorities
in the Prevailing Business Environment
PKC Advisory’s Service Offerings and
Credentials in this context
2PKC Advisory
Changing Priorities…
Professional
Management
Typical
Considerations
Due to ongoing downturn in oil prices, volatile markets and
prevailing geo-political concerns, businesses in the Middle
East are facing continued external pressures resulting in:
Curtailed budgets
Reduced opportunities for revenue growth
Challenges to retain existing business/ position
Limited funding options to sustain and expand businesses
amid reduced market liquidity
Current Priorities/ Need of the hour…
Strategic Realignment
Business Performance Evaluation
Operational Effectiveness & Governance
Typical considerations at all times Changing Business Environment
3PKC Advisory
How PKC Advisory can help…
4PKC Advisory
Strategic Realignment to the current business environment
In the prevailing business conditions,
where majority of the companies are
witnessing constrained
opportunities for revenue
growth and a few are also facing
challenges in retaining
existing business/
position, it becomes imperative to
examine the direction in which business
is headed and re-align the
strategy optimally
Assessment of Current Situation
Performance
Analysis of Existing
Businesses/ Portfolio
Changing Business
Environment
Shareholder’s
Expectations
Introspection Extrospection
PKC Advisory’s approach towards Strategic
Realignment
Consolidating Introspection &
Extrospection (SWOT Analysis)
Setting out Overall Strategic Direction
Vision & Mission, Objectives and Strategic Direction
Developing a Business Plan
Preparing a detailed business plan for implementation
of finalized strategic direction
5PKC Advisory
Performance Evaluation through cascading and monitoring of KPIs
Quantitative and Qualitative KPIs Well defined financial and non-financial metrics
Benchmarked to comparable peers
Portfolio companies/ Business-line/ functional
KPIs aligned and summed to the organizational
KPIs and objectives
Periodic Performance Monitoring
Performance review against the plans/ budget
and peers (benchmarking)
Management Dashboard and Reports
Board/ Management Support in evaluation and
decision making
Cascaded into
Strategic Direction
Well defined Vision and Mission
Realigned strategic objectives
Detailed business plan for implementation Typical Situation
Company’s strategic
objectives and KPIs
are vaguely defined
Strategic objectives/ KPIs
are not cascaded into
business line/ functional
objectives
Inadequate measure of
performance against
objectives leading to lower
accountability
Late identification of problem
areas that may be strategic
in nature
6PKC Advisory
Performance Evaluation through comprehensive Diagnostic Reviews
Holistic health check:
financial & non-financial
Proactive strategic or
operational alignment
Increased
organizational
effectiveness
Synergies between
the businesses and
operations
Meeting shareholders
expectations
Business Review
Operational Review
Financial Review
Strategic objectives alignment
Vision and business plan
Business segments and geographic
spread
Market assessment
Core functions such as Sales &
Marketing, Operations, Procurement,
Accounting & Control etc.
Support functions such as Finance,
Audit, IT, Admin. etc.
Org. structure & HR processes
Financial performance vis-a-vis
budgets
Capital structure review and
valuation
Benchmarking relevant KPIs
against peers
Key Objectives Focus Areas Outcome
Implementation
and Monitoring of
Special Projects
Clearly Defined
Roadmap/ Special
Projects for improving
Organizational
Effectiveness
7PKC Advisory
Operational Effectiveness & Governance through Organization and Processes
Alignment of the organizational structure to suit evolving requirements
Development of corresponding JDs for key positions, departmental KPIs, Delegation of
Authority (DoA) matrix in line with the going-forward strategy
Organization
Alignment
Develop operating manuals and SOPs for various business functions
Align procedures with updated organization structure and leading practices
Standard Operating
Procedures
Conduct risk based process reviews to highlight control gaps
Identify root-causes for the gaps in business design & processes
Recommend suitable plans and process improvement measures
Business Process
Design & Reviews
Identify and develop suitable corporate governance framework
Meet applicable policy and regulatory requirements
Governance
Solutions
Fixed asset verification/ tagging and inventory verification
Charge-back model for allocation of costs to subsidiaries/ business units
Pre-audit of project payments
Other Value Added
Services
Credentials
9PKC Advisory
Illustrative Assignments: Strategy Consulting
Strategy detailing for a leading hotel & catering company
in Kuwait with operations spread across the MENA region
High-level entry strategy of equipment leasing business
in the Kingdom of Saudi Arabia
Developing a strategic roadmap for setting up a chain of
educational institutions across India and MENA region for a
leading diversified investment holding company based in
Kuwait
Portfolio evaluation of a leading family office in Saudi
Arabia
Portfolio evaluation of a leading diversified investment
holding company in Kuwait
Entry strategy for family office venture in the GCC region
for a leading investment bank based in Bahrain
Strategy detailing and business plan preparation for the
Lebanese branch of a commercial bank based in Iraq
Strategy detailing and business plan preparation for a
structured finance company based out of Kuwait
Undertaking market study of real estate sector in Saudi
Arabia in order to derive the portfolio allocation strategy
based on key drivers across asset classes and provinces
Valuation of Private Equity portfolio for a holding
company with investments across various sectors in Saudi
Arabia and Qatar
Performance analysis, business planning and strategy
formulation of various companies/divisions of a diversified
investment holding group based in Saudi Arabia
Analysis of an industrial holding company in Kuwait for
assessing strategic alignment with the investment
objectives of a leading diversified investment holding
company
Economy & sector analysis of North African countries
for portfolio allocation guidelines for a private equity fund
focused on North Africa region
Strategic asset restructuring of a large diversified
business group with presence in the MENA region
Preparing a case study on the regional expansion
strategy adopted by a commercial bank
Strategy formulation for a leading real estate developer
with developments across the MENA region
Strategic asset restructuring of an industrial investment
holding company in Kuwait
Case study on entry strategies of new mobile operators
in the market for a leading telecom player in the GCC
region
Program management assistance to a leading investment
bank in Bahrain for developing their strategy
10PKC Advisory
Illustrative Assignments: Business Performance Evaluation
Development of Process Framework and bringing
Standardization in the processes of LRPs, Budgeting and
Periodic Performance Monitoring of banking, media,
industrial and real estate companies
Budgeting/ Business Planning and Performance
Review Framework for various companies/divisions of a
diversified investment holding group based in Saudi Arabia
Diagnostic study for a hotel management and catering
company to form operational strategy
Analysis of core operating companies in the automotive
sector for a leading family office in KSA
Performance benchmarking analysis for a leading
telecom operator in Kuwait for a leading diversified
investment holding company based in Kuwait
Budget analysis of a food & beverage subsidiary for a
Kuwait based industrial investment company
Financial Analysis of an industrial holding company in
Kuwait for assessing strategic alignment with the
investment objectives of a leading diversified investment
holding company in Kuwait
Performance Analysis of a leading insurance company in
Kuwait for a leading investment holding company in Kuwait
Performance review of a factoring company in India for
evaluating a joint venture with a universal bank in Bahrain
Diagnostic review of business performance of various
divisions of a large asset management company
In-depth analysis of bad returns of a dairy & food stuff
company to enhance the bottom line
Annual performance review (against their budgets and
peers) of various subsidiaries (across sectors including
Real Estate, Financial Services, Industrial, etc.) of a large
business conglomerate in Kuwait with investments across
the MENA region
Interactive management dashboards for tracking the key
financial performance metrics of the portfolio companies for
a diversified investment company.
Portfolio review & restructuring of the investment
portfolio of a diversified business group in Saudi Arabia
Performance review and capital restructuring options
for a specialized real estate institution
Review of management prepared Board packs of a Pay
TV operator in the MENA region
Regional benchmarking to identify best-in-class
operational and financial drivers for banking industry
Comprehensive support to the investor’s
representatives on the respective Board of the
companies covering decision on meeting agenda to
analysis of documents received as part of Board pack
11PKC Advisory
Illustrative Assignments: Operational Effectiveness & Governance
Development of Org Structure, JDs, KPIs, Key
Departmental Interfaces, and Delegation of Authority
Framework for a leading real estate development company
in the MENA region
Policy and procedures manual for financial control
division of a large family business holding company
Development of Standard Operating Procedure Manual
for a construction and facility management company based
in Saudi Arabia
Review and Gap Analysis of the Policy documents for the
HR Department of a leading commercial bank based in
Kuwait and aligning them with the best practices
Assistance to a leading commercial bank based in Kuwait
in streamlining and updating the policies & procedures
for its banking operations including administrative services
Preparation of the Corporate Governance Manual for a
leading commercial bank based in Kuwait
Assistance to the risk department of a leading commercial
bank based in Kuwait in developing Risk Policy and
Procedures Documents for its Credit, Operational, Market
and Information Security Units
Gap analysis of Credit Risk, Market Risk and
Operational Risk Policies documents and alignment of
the same with the BASEL and Central Bank
requirements for the third largest Bank of Kuwait
Development of Policy and Procedures Documents for
the Operational Risk department
Development of SOPs for the Finance & Accounts,
Human Resource, Procurement, Canteen, Housekeeping,
Stores, Transportation, Facilities, Nursery and Office
Management functions for the Corporate Office and K-12
Schools of a reputed educational group
Development of SOPs for F&A, Supply Chain, Sales,
Marketing, Human Resource, and Administration functions
for a leading food grain distribution company
Design and development of Vendor Evaluation
Framework for a leading commercial bank based in Kuwait
Development of Operations manual for a new investment
division of a large investment holding company based in
Saudi Arabia
Development of Risk Policy & Procedure Manual for an
investment division of a leading asset management
company based in Saudi Arabia
Review of Governance Manual for a leading commercial
bank based in Kuwait for its subsidiaries in Tunisia and
Jordan
Assistance in formalizing the mandate for ERM
department at both group and subsidiary levels and
defining its roles and responsibilities for a leading
commercial bank based in Kuwait
Review of ICAAP, Stress Testing and Risk Appetite
policies and alignment of the same the BASEL and
Central Bank requirements for a large family owned
business Bank in Kuwait
12PKC Advisory
Review of investment portfolio and developing
restructuring guidelines for a diversified business group
Business Situation
The Client (a diversified business group in Saudi Arabia) had a
portfolio of around 25 investments, majority of which were
unlisted and wanted to undertake detailed analysis and valuation
of each of these investments. The objective of the assignment
was to provide recommendations on restructuring the portfolio
appropriately for maximizing the shareholder’s returns.
Our Role
The scope of work entailed undertaking financial analysis of each
of the investments and providing recommendations for
restructuring including stake increase, partial or full divestment,
indicative timing of exit, etc.
We carried out valuation of each of the investment using various
valuation methodologies such as Sum of the Parts Valuation,
Discounted Cash Flow Approach and Relative Valuation. We
undertook discussion with the management of each of the
investments for a high level assessment of the business outlook
and arrive at the assumptions while undertaking the valuation.
A detailed report was prepared for each investment highlighting
the key positive and risks after analysing the company,
competition and industry prospects amongst other factors along
with a presentation on overall portfolio recommendations.
The Value We Added
The deliverables included a presentation covering the overall
portfolio level restructuring recommendation as well as 5 year
financial projections for the investment division, which assisted
the Client in restructuring its investment portfolio optimally.
Case Studies: Strategy Consulting
Strategy Realignment and Business Plan preparation for a
real estate subsidiary of a large conglomerate
Business Situation
In light of significant changes in the real estate markets regionally
as well as in key markets of the Client, the Client (a leading real
estate company based out of Kuwait and having developments
across the MENA region) wanted to review & realign its business
strategy. In addition, the Client required assistance in formulating
a road map to expand/ re-look its geographic and segment focus.
Our Role
The overall objective of the assignment was to prepare a detailed
strategic plan through discussions with the senior management.
The scope of work involved reviewing the existing strategy,
evaluating outlook for new business opportunities, suggesting
geographies for expansion/ exits along with an advice on
rationale, indicative timing for entry, associated risks and
opportunities.
PKC Advisory also reviewed the Client’s asset portfolio across
segments and proposed a revision in portfolio by indicating new
real-estate activities & segments for expansion and
diversification. Following a detailed discussion with management,
PKC Advisory prepared a comprehensive strategic plan outlining
assessment of past performance, current scenario, new vision &
management objectives, new targets and a road map for future
developments.
The Value We Added
The overall strategic assessment clearly brought out the key
objectives for the short to mid-term horizon and a comprehensive
company-level & business-line wise strategy was developed.
13PKC Advisory
Business Situation
The Client (a leading conglomerate based out of Kuwait with
companies across the MENA region) has significant stakes in
companies across banking, asset management, insurance,
media, food, industrial, etc. PKC Advisory was engaged to
standardize and consistently implement a more robust & efficient
periodic performance monitoring system across the group.
Our Role
As part of the exercise, PKC Advisory worked across following
elements:
• Review of current processes across different companies
• Identification of gaps with respect to Client’s expectations and
leading practices
• Standardization of coverage, structure, approach, process,
format, etc. of Periodic Performance Analysis (Monthly/
Quarterly, LRP), Benchmarking and Case Studies
• Interactive management dashboard
We undertook an in-depth review of existing activities/ information
besides elaborate discussions with the process owners.
The Value We Added
We developed standardised templates and processes for
Monthly/ Quarterly analysis, Benchmarking and Case Studies for
all desired companies of the group. The scope was further
extended to develop financial projections (LRP) with flexibility of
carrying out re-forecasting based on periodic performance
analysis.
Business Situation
The Client (a hotel & catering company based out of Kuwait and
having properties under management across the MENA region)
engaged PKC Advisory in alliance with a specialist and local HR
consulting company for undertaking a comprehensive diagnostic
study encompassing its various business lines and operations.
Our Role
The study was aimed at assessing the company’s performance,
progress and identifying scope for further improvement, post the
initiatives undertaken as a part of the restructuring exercise and the
management change.
The assignment included review of all lines of businesses of the
company, their operational and financial performance, planning and
budgeting processes, sales and marketing strategy, organization
structure, IT infrastructure and information systems, accounting,
MIS policy and procedures. The review was a highly collaborative
process involving a review of data/ information and discussions with
management and various other officials from different business
lines/ operations.
The Value We Added
The deliverable was in the form of a diagnostic study report to take
stock of progress till date and assess the scope for further
improvement on operational aspects. A detailed presentation
highlighting key issues was also prepared along with a clearly
defined roadmap for implementation of corrective measures.
Case Studies: Business Performance Evaluation
Performance review framework and periodic assessment
of subsidiaries of a holding company
Diagnostic study for a hotel management and catering
company to form operational strategy
14PKC Advisory
Case Studies: Operational Effectiveness & Governance
Business Situation
The Client (a leading real estate company) was seeking assistance
in aligning its organization structure, preparing job descriptions
(JDs) for key positions and designing Departmental KPIs and a
Delegation of Authority (DoA) framework. PKC Advisory was
engaged to assist the company management in this exercise.
Our Role
PKC Advisory assessed the organization structure requirements
based on the going-forward strategies and undertook a
requirement/ gap analysis by assessing the roles and
responsibilities of the key personnel.
Subsequently, PKC Advisory drafted a suitable organization
structure along with detailed job descriptions for the key positions.
The exercise also included preparation of departmental KPIs and a
Delegation of Authority (DoA) framework clearly defining the
segregation of duties and roles &responsibilities for each given
activity thereby optimizing the overall organizational design and
effectiveness.
The Value We Added
The exercise provided the Client with a robust organization
structure, JDs, departmental KPIs along with a DoA Framework
which were all aligned to its going-forward strategy
Policy and procedure manual for Finance and Operations
department of a diversified business group
Development of Org Structure, JDs, KPIs, Key
Departmental Interfaces, and DoA Framework for a real
estate development company
Business Situation
The Client (a well diversified group) was in the process of
streamlining its processes and was considering preparation of a
comprehensive policies & procedures manual for adherence and
consistent implementation by its Finance & Operations unit. In
this context, PKC Advisory was engaged to assist the Client in
reviewing and updating the policies & procedure manual for the
Finance & Operations department.
Our Role
PKC Advisory undertook discussions with the Client to
understand the key functions performed by the Finance &
Operations department, policies & procedures currently being
followed with regard to these functions, practices at ground level,
linkages with other departments, etc.
Subsequently, PKC Advisory prepared a comprehensive mapping
of the functions performed by the department across the
investment value chain and other core functions. The policies &
procedures related to each of these functions were detailed in the
manual along with supporting formats, checklists, etc.
The Value We Added
PKC Advisory highlighted the existing gap areas in the policies &
procedures being followed by the department, which were
subsequently addressed in discussions with the Client, resulting
in a comprehensive Policy & Procedure manual for the
department.
Email : [email protected] Website : www.pkcadvisory.com
