A Solid Foundation Supports Value-Oriented Growth

A large conglomerate retooled to deliver peer-leading growth.

A large Asian conglomerate decided it was time for action. Its plan: transform itself from a collection of unrelated businesses to a global Fortune 500 company with a well-defined business portfolio. The ultimate goal was to deliver peer-leading, value-creating growth.

The transformation of the group was led and steered by its young chairman, who chose BCG as his partner. In the first phase of growth, the company established a solid foundation. Working in partnership, the chairman and BCG developed a cohesive portfolio strategy that led to the consolidation of some units and the divestment of others. In addition, the organizational platforms such as the planning, controlling, investment approval, and performance management processes were strengthened. Then, a new role was defined for the corporate center that concentrated on guiding growth through a value-management lens.

With help from BCG, the conglomerate identified three steps to fulfill its quest for value-creating growth:

  1. Transparency on value contributors within the portfolio
  2. Funding for growth unlocked through intelligent divestments
  3. Targets for acquisition based on sound criteria

In the next phase of growth, the chairman set the growth aspiration to join the Fortune 500 and sought BCG's assistance in the journey. The effort—steered by the chairman and executed by the leadership team and business heads—initially involved assessing growth opportunities for each existing business, as well as identifying the most attractive new businesses to enter. BCG then prioritized the opportunities and helped define the strategies needed to seize them.

The transformation, in numbers, in the organization, in the enablers, and in the culture, was led by the chairman and his core leadership team, who devoted a significant portion of their time to setting the enablers in place.

The company substantially improved the fundamentals of its core business, deployed new marketing approaches, increased its agility, and successfully entered new, fast-growing markets.

The conglomerate now has a deep bench of management talent, a strong growth mindset, and a center skilled at driving growth. Its leaders now set their sights higher and are seeking a set of billion-dollar growth opportunities that could fuel their ascent in Fortune’s rankings. The group has been ranked among the most respected companies in Asia and among the best places to work globally. And it continues to evolve and set higher goals.