Real Results from Promentor Projects

Rural Health Service (VIC)

Rural health services are often working with minimal resources; making efficiency a key factor in success. Promentor reviewed and improved multiple processes for a rural health service in Victoria. Postimplementation, the client experienced:

• An improved flow of patients through the ED
• Increased theatre utilisation
• Reduction in patient waiting lists
• Increased bed capacity
• Improved discharge planning

These are only some of the many outcomes to our role. For more information, contact the team.

Health Service Network (SA)

Working collaboratively with health services and government staff, Promentor assessed and improved operations for a health service network in South Australia.

Our key responsibilities included:

• Improve accountability
• Identify opportunities for better patient care
• Decrease operational costs

We provided internal teams with a robust plan that was quickly accepted by both senior clinical staff and operational teams.

Aviation

In 2020, Virgin Australia Holdings Limited entered voluntary administration due to the COVID-19 pandemic. The Bond Holder Group was appointed to assess options for the business, while Deloitte was also engaged as a voluntary administrator. Promentor was engaged to assess the plan put forward by the management of Virgin Airlines.

Our assessment found that the existing plan was too ambitious as it underestimated the times and costs to deliver changes and the organisation could not absorb it all at once. We developed an alternative plan, which focused on building a sustainable foundation for business by:

• Maintaining its position as a quality full-service carrier
• Driving a competitive cost base
• Suspending operations as a low-cost carrier
• Maintaining and growing the existing Velocity program

This plan was presented to the Bond Holder group which was successful in influencing management for the new V2.1 plan. As a result, a non-binding offer was created where a full debt-for-equity swap would eventuate, an ASX company would provide creditors with liquidity. The 2.0 plan would be backed by the Virgin Management team as well as interim funding of $200 million would be available to the company for the period of administration and $600 million available from the end of Administration.

Agriculture

Promentor were engaged by a long-standing family business with over 300 hectares of orchards.

Their key objectives included:

• Expand to supply larger retailers
• Compete against importers
• Align their produce to client needs
• Resolve inefficiencies

When the project was complete, the business had significantly reduced operational costs and began trading directly with Tier-1 retailers.

Energy

A company providing construction and maintenance services to the Electrical Distribution Industry had strong customer sentiment, but was not price competitive. Promentor were engaged to assess the operations. Our assessment found a siloed structure and underdeveloped staff were creating poor returns (3% EBITDA of sales).

Promentor implemented a restructure, increased collaborative working and staff training. This led to an increased to 10% EBITDA of sales, $3m in operational cost savings and $3m in additional revenue.

Engineering

A specialist engineering firm were at risk of losing growth due to operational trends. Promentor were engaged to examine current operational environments and recommend areas for growth.

Taking a hands-on approach, our team conducted site visits in NSW, South Australia and Western Australia to better understand day-to-day business operations. We also conducted meetings with over 50 staff to gain insight into areas for improvement.

Our assessment highlighted the need for improvements to governance, culture, strategy, organisation and business processes. Our final plan was endorsed by the company board and implemented with the assistance of a Transition Committee.

Franchise

With the sudden resignation of the CEO, negative results in a franchisee survey and disorganised franchise management; the company was losing $10m per annum. Promentor assumed the role of CEO, reviewed strategy and made urgent financial changes. Working with senior management and franchisees, Promentor implemented new strategies, a performance framework and a culture change. Outcomes included improved sales and marketing strategies, a better culture and a complete turnaround to $18m in profits per annum.

Insurance

A publicly owned retail insurance company struggled due to inefficient structures and a lack of market strategy. Promentor implemented a radical restructure which led to the company meeting its targeted 10% EBITDA on sales with over $20m in operational savings per annum.

Logistics

Promentor acted as project managers on the construction of a new distribution centre for a large overseas manufacturer. Key to this project was meeting a tight deadline and ensuring scalability for future growth. The completed centre was delivered on time and within budget with the assistance of Promentor.

Mining Resource Projects

Promentor were engaged for a comprehensive review of a large Australian mine. Key areas for review included; employment of contractors, logistics, organisational structure and performance management frameworks. Post-review, Promentor implemented a wide range of recommendations.

Outcomes from our involvement included:

• Reduce operating costs by 20%
• Improve logistics and operational processes
• Build effective governance and accountability frameworks
• Identify performance trends and respond in a timely manner