Upload
ignacio-santos
View
283
Download
0
Tags:
Embed Size (px)
Citation preview
Unleashing organizacional value Value proposition for LATAM Private Equity & Venture Capital
January 2015 Ignacio Garcia – Santos
Latin American economies are growing... ..at a steady pace even though there are still big political and infrastructural issues to be solved…
With a strong middle – income class… ..that will leverage a market expansion in the coming years creating big opportunities for those with local experience and networks…
“The poten*al impact of VC in La*n America is enormous considering that small and medium enterprises account for more than 95% of all firms in the region and are responsible for 60% to 70% of employment”
Situation which is attracting Global PE to the Region…
“Absorbing the lessons of what has not worked well in China and India, GPs and LPs are broadening their horizons beyond the BRICs to seek diversifica*on in markets that will offer the next wave of growth, including Sub-‐Saharan Africa,
Southeast Asia and La*n America” Bain PE Report 2014
A recovering industry focused on expansion… …creates a unique opportunity for Latin American PE funds with value creation and long term investment philosophy…
Mid – Market: Size of investment (10 – 100 mill usd) or Company revenue (30 – 250mill usd)
A total of US$3.5b was raised during the first half of 2014, with final or par*al
closings for 23 separate funds.
An opportunity that requires… Organizations capable of dealing with developing economies and complex business environments.
Targeted policy tools to promote business development in La*n America
OECD 2013
Organizations are complex systems with a high interdependence between its elements..
The disconnection between any of the elements of the system has a huge impact on its execution capability destroying value
as a consequence.
Each phase of a growth cycle requires a distinctive articulation of the elements…
Time Co
mplexity
Understanding the organizational system correctly is critical in order to determine the best possible approach to its challenges.
Having a clear understanding of which are the main restrictions impeding growth… is crucial in order to determine the most appropriate approach to unleash the potential value.
Accountabilities
Capability
Integration of value chain
Coordination and Execution
Vision
Leadership
Identity Versatility
Value strategy
Alignment and planning
DIRECTION
CULTURE
CA
PABI
LITY
D
ELIVERY
Our value proposition... Stage: Value strategy vehicle evaluation
Offer Description
o Diagnostic tools: Transformation index ®
o Organizational diagnosis to understand how the system is working and what is the most important deficiency and restriction to unleash value.
o Specific cultural assessment.
o Diagnostic tools: Organizational complexity diagnosis
o Determine how much value is lost due to organizational deficiencies in levels of work, role relationships, accountability setting and organizational design.
o Diagnostic tools: Capability assessment
o Evaluate GP, Board or Management capability to manage the vehicles complexity.
o Determine adequate capability and strategy / role correlation to increase probability of promised returns.
“We increase the funds knowledge of the organizational capabilities that affect investment returns in a simple and
measurable way”
Our value proposition... Stage: Value strategy vehicle development
Offer Description
o Organizational Integration
o Cultural readiness pre – integration
o Cultural integration (during integration process)
o Organizational strategic alignment (after integration).
o Organizational design & Capability planning
o Organizational design aligned to the strategy of one investment object or the combination of several.
o Determine the most appropriate governance system and decision making allocation according to the strategy.
o Install talent management system and leadership practices to assure requisite organizational capability.
o Exit alignment of management team
o Prepare management team to sell company increasing transition readiness and strengthen leadership to conduct the transition.
“We increase the investments viability reducing time and effort in the performance improvement of the investment object”
Our experience in LATAM… Some successfully cases..
Company Year Project Descrip8on
AESA YPF Group 2014
Organiza*onal value chain Integra*on
In 2014, aaer 7 years of having worked in the company's turnaround aaer near bankruptcy, AESA needed help dealing with its growth in the Oil & Gas engineering and construc*on services industry. The local industry was under a huge expansion fueled by shale gas which required a more integrated company capable of assuring value delivery at a total new level of demand. AMG lead the transforma*on and value integra*on process.
Britanite Grupo CR Almerida, Grupo Breca and Sigdo Koppers
2013
Organiza*onal design and capability assessment
In 2012 the mining services company, Britanie (Brazil), incorporated Sigdo Koppers (Chile) and Grupo Breca (Peru) as stakeholders. In 2013 the new board asked AMG to help determine which would be the most adequate organiza*onal design and capability requirements for the new strategy. We designed a new organiza*on and the first to levels of management where evaluated to determine their fit to the new role requirements.
Petrobras Argen8na 2004
Execu*ve Capability Assessment
In 2004 the Oil & Gas company Petrobras Argen*na, acquired Pecom Energia from the Perez Companc Group. During the process AMG Consul*ng assessed all key execu*ves and advised on the conforma*on of the merged company in order to assure adequate capability in the joint company.
Our experience in LATAM… Some successfully cases..
Company Year Project Descrip8on
LAN & TAM LATAM Airlines Group
2012 Cultural Integra*on
Aaer the integra*on of the two airlines was anounced, in 2012 all regional and “long haul” opera*ons where merged bringing together two very different cultres and management styles. AMG was incharge of integra*ng the management team, clarify new accountabili*es, and strengthen the team's dinamic. At the same *me, and during 6 months, we worked with all the opera*ons to increase cultural integra*on redeaness, develop leadership capabili*es to deal with change and cultural flexibility, and align opera*ons with merger priori*es and cri*cal areas of success.
Alsacia & Express 2011
Organiza*on Design of integrated company
In 2011 Grupo Rios acquired the remaining stake in Express consolida*ng its posi*on as the biggest operator of the integrated public transport service of San*ago, Chile (TransSan*ago). The new merged company needed to combine opera*ons and deal with change without affec*ng a very sensible public service. We worked on the change process, cultural integra*on and designed an organiza*on capable of simplifying opera*ons, assuring a bejer quality of service and reducing inefficiencies.
Backed by a world class industry expert ... Adding unique world class industry expertise to our organizational transformation experience...
AMG and Enhancer have partner to offer their unique experience in the industry and transforming
companies to the Latin American PE Market.
Enhancer Executive Advisors • Since 1998, Enhancer has contributed to improved performance and
significant value creation in over 200 large and small companies as well as public institutions. Enhancer consists of one of the most experienced groups of corporate advisers in Sweden today.
• In recent years Enhancer has through its work in a wide range of industries and in many countries had the opportunity to study in detail the real and factual organizational conditions to capitalize on a company’s full potential.
• Examples of clients where Enhancer has been engaged are the Ministry of Justice, The Swedish Police, Swedish Prison and Probation Service, Vattenfall, Fortum, PostNord, SJ, Svenska Spel, Eniro, Ericsson, Sony-Ericsson, TeliaSonera, SEK, SAS, Strålfors, Bisnode, Metronome, Lernia, Johnson & Johnson, Toyota.
• In addition a range of other small and large companies are on the list. One Private Equity player has been engaging Enhancer in more than thirty of its portfolio companies.
• Enhancers behind the scenes success is based on two fundamental assets. The first is a set of vital scientific findings constituting the levels theory, SST (Stratified Systems Theory) by Dr Elliott Jaques and second, a group of senior consultants with high capability and a solid background in Business and Academia.
Enhancer Success case study I
Predictability of Investment Performance, AP6 • AP6 is one of six public pension funds in Sweden and invests
primarily in private equity funds and directly in privately and publicly owned companies.
• In 2002 Sjäje AP-‐fonden (SF) became aware of Enhancer’s science
based methodology. The SF invests in both private companies directly and in PE firms.
• The SF decided in 2002 to use the methodology to improve its performance (in more than 30 companies) and at the same *me conduct a study to validate the importance of ensuring that companies have the right CEO and ensuring that PE firms have partners at the required level.
• Using Enhancers method for determining the match between the
level of the CEO role and the CEO, SF was able to predict whether the companies would perform below or above the required rate of return as investments.
Enhancer Success case study I
24 companies 6 Private Equity Firms
Investment outcome
Posi*ve Predic*on
Nega*ve Predic*on
Posi*ve Predic*on
Nega*ve Predic*on
Posi*ve Outcome 11 3 3 -‐
Nega*ve Outcome 1 9 -‐ 3
Prospec8ve study of 24 companies and 6 private equity firms:
Results, 2-‐8 years later: 26 out of 30 companies performed as predicted
Enhancer Success case study II
Capturing improvement poten8al in India
Project • Analysis and organiza*onal development in major growth
market (India)
Change Program • Implementa*on of clear and aligned tasks • Adding managerial layer with higher capability
Results
Enhancer Success case study II
Op8mizing SoYware Development Unit
Situa8on • Aggressive low cost compe**on • High internal cost level Change program • Clear and aligned tasks • Two repor*ng levels removed • Required staffing secured • Agile process Results
• Time to market from 31 to 3 weeks
• Major contribu*on to largest deal in units history
• Highest employee sa8sfac8on within Ericsson
Enhancer Management team
Jan Åke Karlsson Senior Partner Enhancer
Ulf Lindberg CEO at Enhancer Consul*ng
• Ulf is a business and marke*ng oriented CEO with a strong network and extensive interna*onal experience from strategy development, management, nego*a*ons, mergers & acquisi*ons and financing. Ulf has 15 years experience from leading posi*ons in large global corpora*ons as well as many years as CEO for entrepreneurial businesses.
• Ulf has with Enhancer worked as advisor for well over 200 companies on request of owners, boards and top management, from big mul*na*onal corpora*ons to small start-‐ups and public ins*tu*ons.
• Furthermore Ulf is an appreciated moderator and process leader. He is for example moderator for CBN and in Founders Alliance.
• Jan-‐Åke has a business and marke*ng background, and has worked in a variety of industries and corpora*ons with global presence.
• During his career, Jan-‐Åke has primarily been engaged in change/growth ini*a*ves, e.g. heading complex projects, managing turn arounds and carrying out major restructurings. The largest organiza*on he has led had a turnover of 2 billion USD. He also has experience from working with brand equity issues for some of the top brands of the world.
• Furthermore, Jan-‐Åke has been Chairman and member of the board of several energy companies, entrepreneurial start ups and trade associa*ons.
Strategic Consulting in Organizational Transformation
25 years of experience
advicing leading Firms in Latin America.
We contribute to the
sustainable growth of
businesses by mobilizing
behavior and aligning
organizational
capabilities to the
company's value
strategy.
Help companies and people grow and transform themselves, contributing to the development of those countries in which they perform.
Our Mission
Clients require us when… Accelerated growth provokes imbalances in their implementation capacity Lack of alignment with the strategic vision hinders their sense of direction Mergers and acquisitions require integration of capabilities and cultures. Mobilizing the organization’s behavior is needed to increase business performance. Differentiating its value proposal is required to create a client centered organization. New leadership practices need to be developed to guarantee sustainable growht