Case Study: Transforming Serco Europe's Target Operating Model for Profitable Growth and Integration

Introduction

In April 2023, Hoogeboom LTD partnered with Serco Europe to embark on a transformative journey aimed at redesigning Serco Europe's Target Operating Model (TOM). The primary objective was to lay the foundation for Serco Europe to become the most profitable business unit within the UK and Europe organisation and support the growth agenda. This case study delves into the challenges faced, the methodology employed, and the outcomes achieved during this extensive transformation project.

Challenges

Serco Europe encountered a series of complex challenges during this transformation:

1. Cultural Integration: The project unfolded in the context of a challenging cultural integration between two organisations post-acquisition in Switzerland, each with its own diverse multilingual teams, systems, processes, and ways of working.

2. Complexity and Fragmentation: The merger of two entities operating across 10 countries introduced a high degree of complexity and fragmentation within the organisation, making it imperative to streamline operations and processes.

Methodology:

The transformation approach consisted of a systematic process that involved the following key steps:

1. Functional Analysis: Hoogeboom LTD engaged functional leaders to conduct a comprehensive analysis of their respective functions. This included mapping activities, cost allocation, and identifying capabilities required for delivery.

2. Design Principles: A set of common design principles were established, aiming to centralise processes and tools while allowing for local execution. These principles respected the cultural and regulatory frameworks in which the organisation operated.

3. Organisational Restructuring: Based on the functional analysis, organisation structures were redesigned to support the identified capabilities, ensuring alignment with the newly established design principles.

4. Cost Optimisation: A significant deliverable was the baseline of the organisation's overhead costs. This provided a clear roadmap to reduce costs from a relatively high base to one more in line with industry benchmarks.

Outcomes:

The transformation project yielded the following noteworthy results:

1. Cost Savings: The organisation achieved cost savings of 1 million Euros in Year 1, 2024, with an additional 2 million Euros expected in 2025/2026.

2. Overhead Reduction: Target overhead reduction successfully decreased from 11% to 8% as a percentage of revenue.

3. Cultural Challenges: The project identified and highlighted cultural challenges that posed significant risks to the business, including issues related to health and safety, post-acquisition integration, duplication, governance and international entity requirements.

4. Operational Clarity: Functional leaders gained a clearer understanding of areas requiring efficiency improvements and better ways of working.

5. Implementation Plan: A detailed implementation plan and business case were developed to support the newly designed Target Operating Model.

6. Scalable Growth: The newly established Target Operating Model was designed to support scalable growth and operational efficiencies.

Testimonials:

Marlies, the project lead from Hoogeboom LTD, received accolades from key stakeholders involved in the transformation:

1. Julie Veysset, Financial Director Europe at Serco Europe, commended Marlies for her strategic guidance and support in building proposals and effectively communicating them to the management and colleagues.

2. Olivier Devaux, a Change Management Consultant in Brussels, praised Marlies for her ability to quickly grasp the project's challenges, focus, and efficiency, as well as her talent for motivating and creating trust among the project team.

Conclusion:

The collaboration between Hoogeboom LTD and Serco Europe in redesigning the Target Operating Model has not only yielded substantial cost savings but also provided a clear roadmap for profitable growth and enhanced operational efficiency. This case study showcases the successful transformation journey driven by a strategic partnership and the dedication of a capable leader, Marlies, from Hoogeboom LTD.

I enjoyed a lot working with Marlies.

Marlies helped me to step back from the day to day activities and focus on the long-term strategy. Her relevant comments and feedbacks helped me to build the right proposal for my team and have it clearly explained to my managers and colleagues.

Marlies is of great support. She quickly understands the organisational challenges, the strengths and weaknesses in a team. Her empathy enables her to connect easily with people.

Marlies definitely helped me to give the best of myself in this challenging project.

Julie Veysset
Financial Director Europe

Serco Europe

Between April and September 2023, I had the pleasure to collaborate with Marlies on a transformation project to redesign 8 business lines for Serco Europe, impacting more than 150 people.
Marlies demonstrated the ability to quickly understand the key challenges we were facing during the mission.  

I highly appreciated Marlies’s focus and efficiency, her capacity to summarise and clearly explain what is relevant.  

Marlies understands and manages all aspects of an organisational transformation and can quickly analyse what matters to deliver benefits.

I want also to stress Marlies capability to work in team, to motivate, create trust and involve people.      

Olivier Devaux

Change Management Consultant

Brussels