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  "documentTitle": "Phillips 66 (PSX)",
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  "notes": "The slide uses a 'villain' framing by attributing poor performance to management's reliance on consultants rather than internal expertise.",
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      "text": "THE COMPANY’S FINANCIALS IMPLY NEARLY $300MM OF SPENDING ON CONSULTANTS SINCE 2022(1) WHICH SEEMS TO HAVE DELIVERED LITTLE TANGIBLE BENEFIT",
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      "text": "...Resulting in the Proliferation of Straw-Man Cost Initiatives; Consultants set targets that can be gamed; Rather than actually lowering the cost base, consultants define success as reducing costs from initial supplier quotes; Employee compensation plans are aligned with the consultant's rubric, incentivizing employees to deliver on illusory savings rather than real cost cuts; Management claims cost cuts, but improvements never 'hit the bottom line'",
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      "text": "Phillips Makes Liberal Use of Consultants... At any given time, multiple management consulting firms engaged across multiple business segments; Use of consultants common at CPChem, has spread to the rest of the business units after Lashier joined Phillips; Given the lack of refining expertise in-house, consultants used to help run the organization and improve operations",
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      "text": "A consistent set of themes have emerged from our conversations with experts, including former employees:",
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      "text": "Note: Based on interviews with former employees and other industry participants. 1) Phillips' Earnings Supplement shows $177mm and $115mm of business transformation restructuring costs in 2023 and 2022, respectively (excluding a held-for-sale asset impairment). Footnotes in the financials describe these figures as \"primarily due to consulting fees.\"",
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