Corporate strategy and governance model for family-owned conglomerate

The situation

A family-owned business that operates in the distribution business and manages investments across diversified sectors in the MENA region wanted to review its corporate strategy and governance model.

It retained Strategy& to assess the current strategy and governance through a comparison with shareholders’ objectives and peer organizations, and to identify the most appropriate strategy and governance framework to adopt.

How we helped

After gaining an understanding of the key shareholders’ strategic and financial objectives, synthesizing the lessons learned from other conglomerates, and assessing the client’s current strategy, portfolio, and governance, specifically regarding operating assets, the Strategy& team developed a detailed corporate strategy. This included an investment strategy that delineated ways to play for new investments, an existing portfolio rationalization, and financial forecasts.

The team then designed the family and corporate governance framework, and drew up an implementation plan to aid the client in executing its strategy and governance. They organized investment workshops that focused on the new sectors and geographies and monitored the progress of the implementation.

Results

Once the new strategy and governance were approved, the client divested both underperforming assets and those that weren’t in line with the Group strategy; established a shadow board of directors to discuss Group-related matters and prepare for future BOD meetings; and adopted a new Group corporate structure that consolidates businesses under a holding.