News & Research: Client Successes

Case Study: Market-Driven Strategy Development

ScottMadden energy consultants worked with an energy company to review, refresh, and provide traction for its strategy in the face of rapidly changing market forces, improving EPS (earnings per share) substantially.

• Existing strategy had many sound elements, but implementation had not gained traction or support at the lower levels of the organization
• Neighboring regions were moving toward deregulation with the threat that local commission would follow suit and also deregulate
• Organization needed to become more customer-focused in response to competitive market forces, especially penetration of retail gas
• Understanding of customer needs was improving, but the client had not capitalized on this knowledge
• The client needed a hybrid planning solution that included equal parts strategic plan and marketing plan, plus specifics and tactics to implement

• Energy consultants defined, implemented, and employed first-ever market segmentation
• Established segment-specific marketing strategies and identified innovative, profitable, tailored customer solutions
• Developed profitability model by customer and strategic insight segment, yielding information that had been sought by chief operating officer for 10 years
• Determined complementary regulatory, pricing, organization, and infrastructure strategies to support segment-specific initiatives
• Identified significant core business growth opportunities along with means by which to capture the value for shareholders
• Guided cross-functional team through planning effort
• Helped initiate cultural change

• Energy consultants developed specific strategies that will increase earnings per share by five to ten percent
• Cross-functional planning team, with limited prior strategic planning experience, became strategy "champions" and leaders of change
• Management at all levels gained a broader understanding and acceptance of strategy
• The organization was energized, and potential deregulation is now seen as an opportunity for growth rather than a threat
• Strategy is now being implemented in an integrated way across functional boundaries—a first for the company