It was flagged Brad. Back in August Mr Grech spoke of
'workstreams working on improving operational effectiveness within the legal services group [UK] Ken and the team have been working very hard at doing the granular work - things like better distribution of the case load and making sure there is the right level of supervision'
Also
'case mix changing to include more multi-track [long duration] relative to fast track'
The upshot of that work commenced since the acquisition is we have the three centres of excellence:
A novice without time/inclination to research fully could make sense of the decisions.
Fast track is more of a mechanical type process perfectly suited to SGS IT systems and less need for face to face contact. Law offices that S&G have acquired that are predominately fast track focused will be surplus to requirement when the same claims can be managed through 'the machine' at less expense.
The more complex multi-tack claims and General Law are more predicated on physical contact with clients and strategically placed offices with specialisations that are matched to demand (bearing in mind competitive nature in various geographical locations).
No doubt the stresses caused by Osborne reforms have intensified focus in certain areas, However, good management constantly evolve and that is what is happening and has been since before the half year bombshell.
Centres of Excellence are not a desperate attempt at survival. They are sound management, part of a a broader ongoing improvement initiative. A process that in reality should be never-ending for any company building a future.
SGH Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
