Social Enterprise - Improving Performance

We helped review a Victorian Op Shop network and
articulate a strategy to improve sustainability.

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Client Situation

  • Our client is a large not-for-profit organisation that operates a network of Op Shops across Victoria to raise funds for their core mission

  • The organisation had never previously reviewed the strategy or operating model of the network, and a recent decline in performance brought the Op Shops to management’s attention

  • The organisation engaged Acutus to undertake a comprehensive review of the Op Shop network to map the market landscape, understand the drivers of financial performance, and identify opportunities to sustainably improve performance

Our Approach

  • We commenced our review by undertaking detailed analysis of the second hand economy and developing profiles for successful Op Shop operators, supported by Mystery Shopping exercises

  • At the same time, we built a financial snapshot of individual stores to identify performance issues across the portfolio

  • We then facilitated a workshop with Team Leaders to generate ideas and improve employee engagement

  • A comprehensive strategy was then developed to enable a sustainable Op Shop business, which was supported by detailed financial modelling and implementation planning for all recommendations

Outcome

  • Our analysis provided our client with a comprehensive review of their store network and the current market landscape, at a level of detail that they had never previously experienced

  • The strategic initiatives were forecast to increase the total surplus by 90% in 5 years

  • Our workshop and store visits increased buy-in from store volunteers to lessen the impact of change

Darren McGowan