TNT

Bringing Economic Profit to life


”We have had the opportunity in a few hours to make our VBM understanding deeper
and to see the impact of any actions we perform (strategic, accounting, financial etc.).”
Massimo Marzano, Finance Director, TNT Logistics, Spain

The TPG group comprises TNT Express, which has a dominant position in the European express delivery business, TPG Post, the Dutch national postal service, and TNT Logistics, a full service logistics outsourcing business. Each of these has different drivers of financial success and is positioned differently in fast-changing world markets.

The Challenge

The company was moving from the financial metric Earnings Before Interest & Tax (EBIT) to Economic Profit as the long-term measure of performance, and CEO Peter Bakker wanted his top managers to embed the principles of Value Based Management into their daily thinking.

The challenge was how to achieve this for TPG Group’s three distinct divisions and in a business simulation lasting less than a day, to be run during their annual Strategic Management Conference.

Our Approach

ProfitAbility produced a suite of three different board-based business simulations for TPG. The initial development and testing was completed in just over two months, and each one was successfully piloted and approved prior to the Management Conference. At the event the simulations were run in parallel for a total of 200 managers.

The Outcome

The feedback from managers was so positive that the Express Division took a site license and trained a team of internal trainers to deliver the simulation. This meant that their depot managers, account managers and sales managers around the world understood better how their decisions in cutting deals, setting prices, and negotiating discounts and payment terms determine both short and long-term business results.

The Logistics division also ran courses worldwide for its managers, which wedelivered in 6 languages across a dozen locations.