Public Sector

Succeeding as a Management Consultant Public Sector

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This detailed podcast, by the engagement partner, discusses the difficulties faced by many European State-Owned-Enterprises during the 2008-2011 recession when many simultaneously saw a drop in revenue and state subsidies. The engagement team in this book led the work to develop a strategy for the courier business of a heavily-indebted European Postal service.

Set in Sweden, this book addresses the challenges faced by state institutions as they struggle to meet tough austerity measures. The Swedish Postal Service (SPS), the client, has traditionally posted losses of $2B per annum but was routinely bailed out by state subsidies. Due to the recession, those subsidies have been removed and the SPS has been tasked with developing a new strategy to turn itself around.

Management consultants have been appointed to conduct the analyses. This book uses data from analyzing and bench-marking both Singaporean and Swedish public sector agencies, which is an ongoing research project within Firmsconsulting. This book focuses on the restructuring of the courier and freight division which generates 60% of the client’s revenue and 72% of profits.

The main challenge for the team was finding the mix of geographic regions, client segments and product types which generated the highest profits at the lowest risk giving the capital requirements to build out and maintain the branch structures.

Unfortunately, the Postal Service was constrained by both the act of government which defined its mandate and a very powerful labor union which blocked reforms. The recommendation had to work with these two constraints in place. Finally, fleet management and pension management were significant cost issues the engagement team needed to manage.

The 269 page book is supported by excel, word, power point, video, audio files, and access to the discussion forum. + 300 supporting documents. All documents may be downloaded and edited.

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