PPC's profit improvement programme (PIP)
PPC embarked on its change management programme #IGNITE in May 2015. This umbrella project focused on providing the strategy, plans and leadership needed to transform PPC into more than just a cement company. One of the focus areas was profit improvement.
PIP value proposition
The programme was designed to:
- Deliver short-term reliable results
- Drive cultural and behavioural change
- Support strategic positioning of businesses in the group
- Deliver sustainable solutions for long-term value creation
Successful implementation and execution
PIP has met its target of delivering R400 million in sustainable savings in a much shorter period than expected. The bulk of the savings came from cost efficiencies, with the remaining improvements coming from revenue enhancements and cost reductions. Notably, this came at negligible expense to the company.
Last reporting period
PPC believes the success of the programme was attributable to mobilising employees across the business to manage the PIP process. While there have been tangible monetary benefits, the positive cultural shift has been a marked one. This has been key to the sustainability and success of the programme. We will no longer be reporting on PIP, but we will continue to monitor and track benefits internally.
Assurance from internal audit
To ensure the integrity of PIP, we have incorporated an internal audit process for objective assurance and independent insight into its effectiveness.