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American Express Company : Business Unit Strategy

As a way to expand the range of services provided for small- and mid-sized business customers, American Express acquired a collection of accounting and business service firms over a period of 15 years. The first acquisitions were small firms, acquired with the assumption that the companies would continue to operate independently, while providing business leads to other American Express units. Over time, the assumptions changed, resulting in the acquisition of large firms with significant market presence.  But differences between the firms acquired in the early years and those acquired later resulted in difficulties in managing the conglomeration. Additionally, the ability of the firms to feed other American Express units with business leads had never really materialized. Was it because the firms were not well managed? Or, because they were not integrated into the corporate culture? And, what should be the focus of growth for the business?

Ultimately, it was determined that they needed to operate as one business with a single, unified goal. Hayes Strategies worked with American Express over a period of six months to lead an internal team, pulled from the management of the acquired businesses, through the process of developing a business strategy. Together, the team analyzed market opportunities, identified business and regulatory trends affecting profitability, assessed customer needs and decision-making processes, developed and validated a common mission, identified strategic imperatives and drafted a strategic plan. During this work, Hayes Strategies provided the strategic expertise and guidance, while the internal team provided the business expertise and legwork.

The partnership resulted in a strategic plan that had the academic rigor and validity needed to impress senior corporate management with its vision, and when the buy-in of the day-to-day managers who would be responsible for its implementation. The vision, serving the middle-market with a superior knowledge network, helped foster growth and allowed the business to become the seventh largest accounting firm in the United States.