Avis Budget Group (ABG) is a leading global provider of car and truck rental  solutions, headquartered in the US.  Founded in 1946, ABG now has more than 11,000 locations in approximately 180 countries and more than 1 million members worldwide.

Over recent years Avis Budget Group (ABG) had acquired a number of car and commercial vehicle rental organisations across Europe and needed to integrate them into their business.

Most focus was needed on those with different brands and different customer models which needed to integrate into ABG business landscape and culture, as well as the technology organisation.

The Challenge

ABG’s acquisitions strategy was to expand their reach in different markets and to increase the number of commercial vehicles available as a proportion of the fleet. Following acquisition, the acquired entities continued to operate independently, under local management and with local supply chain arrangements.

ABG recognised the opportunity to increase brand alignment and effectiveness of operations by adopting a tailored integration approach, which recognised global benefits whilst retaining local engagement where it was more effective to do so.

ABG identified the need for an objective voice to help them define the opportunity and create the right approach to realise it.

Leading Resolutions was appointed to advise them and subsequently provide leadership to deliver and embed the proposed changes.

ABG’s acquisitions strategy was to expand their reach in different markets and to increase the number of commercial vehicles available as a proportion of the fleet. Following acquisition, the acquired entities continued to operate independently, under local management and with local supply chain arrangements.

ABG recognised the opportunity to increase brand alignment and effectiveness of operations by adopting a tailored integration approach, which recognised global benefits whilst retaining local engagement where it was more effective to do so.

The Solution

Leading Resolutions was appointed to help ABG define the IT digital integration strategy within the context of the global business strategy. This provided ABG with an independent, objective approach, enabling clear articulation of the key challenges to stakeholders.

One of the major themes agreed was the need to achieve the right balance between centralised control and localised empowerment on a country by country basis.

As such, the initial analysis undertaken defined the optimum balance for each acquired organisation, recommending what should be integrated and what should remain stand alone.

Leading Resolutions then helped ABG to devise the appropriate governance to enable the subsidiary organisations to retain crucial localised elements of control whilst benefiting from central IT operations to bring efficiency and cost reduction to the group.

The fundamental principle of Leading Resolutions advice was “transition then transform”. A roadmap was created to underpin delivery of this strategy, with clear milestones which could be effectively communicated to the business community.

Recommendations were made for an interim operating model, alongside governance and control procedures to mitigate compliance risks. An effective ongoing communications plan was created to maintain stakeholder alignment throughout the change programme.

The Results

ABG were able to create a situation which delivered the best of both worlds; centralised control alongside efficient operations with local nuances recognised and respected.

The strategy and delivery framework developed by Leading Resolutions enabled ABG to continue to identify the right balance and required activities for subsequent acquisitions and successful digital integrations.