Leading member-owned wellbeing organisation
This organisation offers health, wealth, and care services to over a million consumers. Faced with a sustainability crisis, the client needed to create a scalable, innovative and contemporary operating model which was efficient, centred on value creation, and had appropriate management and support costs.
Bevington Group was engaged to undertake a rapid review of their Human Services platform structure and cost base to help identify options for the future state.
- Bevington engaged with key stakeholders through top-down interviews to collect data on the strategic priorities, and to identify the challenges.
- This led to hypothesis-driven data analysis where issues and their causes were tested and validated alongside a risk and benefits assessment drawing out the relevant opportunities for improvement and quantifying the magnitude of benefit.
- With Bevington’s expertise in operating model design, future costs and inefficiencies were projected based on the existing operating model.
- This provided a baseline to compare the strategic and profitability benefits of alternative operating model options.
Low Net Profit After Tax (NPAT) and Return On Equity (RoE) were examined and the following causes were identified:
|Risk and return portfolios
misaligned where it was heavily skewed towards risk
|Several inhibitors to growth:
The key opportunity themes were introduced:
|Manage the business differently (based on maturity and risk)
|Focus on where you win
|Rebalance portfolio to reduce risk and towards more mature businesses
|Take a portfolio approach to immature businesses to enable test and learn and ‘fail-fast’ mindsets
|Reduce waste in a disciplined way
|Deliver shared services closer to the front-line
- A transformation program, including pilot sites for the new operating model (test and learn model)
- A suite of new and improved metrics to monitor end-to-end process health and measure the program’s success
|Improved financial performance
by changing the state of the portfolio of business
|Improved customer service via an integrated health platform
to provide health care solutions across multiple channels (e.g. in-home, community, and virtual)
The organisation is currently in the process of implementing:
- an improved governance framework
- an improved roster optimisation process
- redesigned processes for branch network operations to improve servicing customers