Business Transformation
SIGMA Group
Sigma Group is a business owned by one of the prestigious royal family (HRH Prince Abdullah bin Al-Faisal Al Saud) in Kingdom of Saudi Arabia. It consists of a diverse portfolio of companies ranging from Logistics to Travel and Oil & Gas.
External Challenges:
- KSA was going thru a transition with the implementation of Vision 2030 by the government
- Fluctuation of oil price has impacted the entire economy of KSA
- Increased competition with the open door policy by the government for foreign business
- At the same time increase of VAT & other taxes has increased the cost of doing business
Internal Challenges:
- Three companies (AET Shipping, IMA & STTB) were struggling to break even and mostly in a loss making situation
- The three companies were run individually and not integrated.
- There was no systematic coordination, every division or department works in a silo manner.
- There was also no planned growth and progress for personnel, no planned career path, and succession plan in the organization.
- Implementation of Business Transformation framework to Develop, Optimize and Execute strategy
- Optimized & Streamlined the 3 companies to turn a profit thru reviewing the followings
Streamlining of people & organization structure
–Review Customer segments & Identify new markets
–Review and Optimize the internal process
–Consolidation of assets & certain part of the business - Developed Governance process & Set up the Board of Directors
- Developed KPI’s to track performance
- Yearly Alignment sessions to identify synergies and collaborate on intiatives
- Revenue increased versus Last Year at IMA; AET made a record profit; STTB was further consolidated and is currently transiting into an Online Travel Business
- Increase in Customer Satisfaction by 50% at IMA, AET & STTB; new market segments identified
- Improvement in internal process: IMA – container repairs, time trucks spent in terminal; AET – improved workflow which increased productivity by 30%; STTB – improvement in Sales Reporting – 100%
- From the Group to the 3 Companies and Support Departments, there are clear, concise Vision Statements, long-term direction and roadmaps translated for execution and ownership assigned
- Leadership competencies of Behaviour and Performance improved
- Organization is better aligned and informed of Strategic Directions
- Organization is performance-centric with introduction of KPIs
Renaissance built a Strategy Management System to address the organizations growth and challenges. I was blown away on the focus of Execution Excellence from day one. They constantly participated in all meetings, activities and decision making process. The value created was tremendous and invaluable”
Khaled Albasrani, Director Sigma Group
