The Efficient Group’s business model centres around its vision, mission and values, and is supported by robust corporate governance structures and processes. Its strategy is to maximise opportunities in the financial services sector, while simultaneously mitigating risks effectively. Operational and management structures are specifically designed to deliver on these objectives.
The Group started out primarily as an asset management company in 1999 and listed on the JSE in 2009. The Group has always followed a sustainable growth plan - incorporating strategy, knowledge, innovation and sound business practices - with the objective of evolving into a multi-faceted financial solutions provider.
The business strategy of the Efficient Group is to be a diversified financial services provider offering customised products, professional services and added value throughout the financial services value chain.
In order to be well positioned to do this, the Group restructured during the 2015 financial year, paring down from four product-focused divisions with centralised support services to three market-focused clusters of business units that are supported by standardised and centralised processes for finance and compliance.
This structure is in line with international trends towards internal entrepreneurship, which aims to empower business units to function independently and so be more responsive to market needs.
The three clusters of business units are focused on:
With these structural changes, the focus is on growing and acquiring entrepreneurial, like-minded entities to expand the Group’s value chain. From a strategic perspective, the Group prefers to acquire a majority shareholding in businesses, but it will consider and pursue minority interests through-out the value chain where synergistic-, cross-sell- or future consolidation opportunities exist or where the acquisition opportunities are accretive.
The restructuring of the Group from product-focused divisions to market-focused clusters of business units also changed the Group’s single brand strategy to a multi-brand strategy. A multi-brand strategy supports the entrepreneurial spirit that the Group aspires to and, more importantly, will allow the Group to fill product- and quality gaps within the financial services value chain by way of vertical integration and the creation of economies of scale. With this entrepreneurial approach the main focus when acquiring new companies is to retain the management, staff and clients. Consolidation under the Efficient brand is primarily reserved for the Financial Services cluster, as well as for those business units whose products or services are closely related to the personal relationship of trust that exists between financial advisor and client, such as fiduciary services. Consolidation would however only be pursued once trust in the Efficient brand has been established within a particular market segment.