A strategy that moves from steady growth to transformative value creation

The Challenge

In 2022, Sureserve had just appointed a new Chairman and CEO. They came to Cognosis with a simple question...

“How do we shift gear from steady growth to transformative value creation?”

The project mission was daunting. How to build a credible business strategy that will unite the board, energise the business, excite investors and provide Sureserve with a path to treble business value – in five years. 

Sureserve consisted of nine different subsidiaries including Gas Maintenance, Energy Metering, Water Services, Lift Services and Fire Safety. The business lacked a coherent strategy, struggled to find synergies across its diverse portfolio, and had no clear purpose or direction. Compounding this challenge was Sureserve’s initial concern about working with external consultants.

We set out to devise a strategy for Sureserve that would deliver improved CAGR and profit margin percentages and treble their value within 5 years.

Our Approach

We helped the Sureserve team to define a new five-year business strategy under the banner “Lead energy transition in UK Social Housing”.  Our approach centred on our Growth Transformation Framework, a proprietary methodology – that provides clients with the tools to challenge their thinking, as well as a clear roadmap and process to build confidence. 

The framework compels the business to answer the following questions to build a strategy that’s rooted in the reality of business capability, culture and financial constraint. 

• How do we run the place? Assess and address the cultural issues that would limit the impact of any strategy. 
• Why do we exist? Push the executive team to define the burning platform and a powerful organisational purpose.
• Where to play? Prioritise markets and customers based on a data-led assessment of market potential.
• How to win? Define a clear, credible path to growth supported by 3-year strategic P&L, fully scoped enablers, and an implementation plan.

This approach helped our team to address four key priority challenges:

1.  Sizing the social housing market: Accurate estimates of the UK social housing energy market were essential. With no reliable data, we conducted a detailed assessment, collaborating with senior leaders to validate assumptions. The resulting model clarified Sureserve's regional market share and growth potential.

2.  Driving tough decisions: Businesses often lose focus by failing to prioritise. Through our Growth Transformation Framework, we guided the management team in focusing on Social Housing Energy, even recommending divestment of other businesses. These tough choices demanded bravery but ultimately strengthened alignment.

3.  Determining the renewable capability to build: The strategy championed renewables, but the best technology path was unclear. We advised acquiring diverse tech to maintain flexibility in a nascent market, reassuring the Board, with the Chairman’s backing, that this increased the chances of success despite risks.

4.  Diverse stakeholder group with conflicting views: The project needed alignment across the Board, subsidiaries, and leadership team. We implemented an engagement plan with a clear RACI and governance framework to facilitate effective strategic decision-making.

All of our strategy development work at Cognosis is underpinned the findings of our “Horizon” research programme, which has analysed the top-performing growth companies in the US and UK over 15 years, uniquely correlating financial metrics with MIT Sloane’s global organisational culture database. 

The Impact

Cognosis helped the Board to make clear and compelling choices. The business strategy unified the subsidiaries and provided a meaningful purpose, establishing Sureserve as a leader in energy transition for the social housing sector. Our approach allowed Sureserve to drive home tough decisions on where to focus, even if it meant divesting several profitable growing businesses. 

The project resulted in significant positive outcomes for the business, investors and social housing sector:

#1 Belief and commitment across all stakeholders

For the first time Sureserve had everyone pulling in the same direction: management team, subsidiary businesses, the board and investors. This increase in belief and focused investment instantly unlocked energy and growth. 

#2 Supporting the social housing sector with their renewable energy transition

Sureserve’s new purpose – ‘Delivering reliable and efficient energy & energy transition for social housing in the UK’ – supports positive societal impact by championing cleaner, more reliable and affordable energy for those who need it most. 

#3 Strong business growth soared the share price

From the inception of the strategy, Sureserve grew organically across all subsidiaries. Moreover, capital from divested businesses was redirected into a targeted M&A programme, which was viewed favourably by the market. 

#4 Premium sale of the business

In 2023, the Sureserve Group Board agreed to an all-cash takeover offer from private equity firm Cap10 Partners. The deal valued Sureserve at a 40% premium to the market. 

Cognosis was awarded Silver in the Strategic Impact category at the 2024 TCGN Awards, which celebrates the positive impact consultancies have on their clients’ transformation, their clients’ customers, society and the environment.