Nursing home

Case study: strategic analysis of a nursing home’s non-core activities

Context

Our customer contacted us as part of a strategic review of one of its support activities: catering. This care home, which has several CIPA* and CPG** throughout the Grand Duchy, wanted to know if and how its catering activities added value to the overall services offered to its senior clientele, and whether these activities could be improved through internal projects (continuous improvement projects), collaboration with other organizations (pooling costs with a partner) or total or partial outsourcing to an external service provider. The aim of this analysis was, of course, to guarantee the same level of service to its customers, whatever the chosen path.

Approach

In order to provide our customer with an organizational and financial overview of the catering business, we proceeded in 3 steps:

1. Gathering and consolidating the information required for the organizational model review and financial analysis. The data collected included all relevant information concerning the main value chain, as well as complementary support services.
2. A synthetic and visual mapping of the current operating model to put all decision-makers on the same level of knowledge with factual, quantified data. This mapping enabled us to define several sourcing scenarios for the catering business.
3. A vision of the activity’s cost and revenue structure to feed the review of the operating model and target scenarios.

Results

This analysis enabled our customer’s board of directors to gain a better understanding of its catering activities from both an organizational and a financial point of view, and to come up with scenarios for their development and improvement.