Turnaround & Cost Reset

Redesign the cost base to what it should be


Key challenges

In distressed situations a rapid turnaround may be required. This often sets short term high objectives for cost reduction, e.g., as 20-30% or more. Another approach is to redesign a company's cost structure bottom up using the zero-based costing approach, typically resulting in much higher savings depending on the situation. Both approaches are challenging to execute, e.g.,:

  • How should a useful baseline for operations improvement be constructed?
  • How are high impact savings initiatives identified?
  • What is the true implementation difficulty of each initiative?
  • How are FTEs related savings captured vs. non-FTE related savings?
  • What can we do to make the savings sustainable, to make them "stick"?

 

Our services

Services include: 

  • Rapid turnaround plan 
  • Asset management strategy
  • Sourcing and procurement optimisation, incl. category projects
  • ZZB (zero based budgeting) cost design
  • Process optimisation and redesign 
  • Support function optimisation, e.g., finance shared services, HR streamlining, including outsourcing and offshoring assessments

Most relevant for: CEO, COO, CPO, CFO or Head of Supply Chain

 

Examples of our proprietary concepts and methods

  • Holistic optimisation of processes based on the practical techniques which work, avoiding overly theoretical approaches such as lean and six sigma
  • Concept for the finance function of the future, including shared services
  • ZZB structures for selected industries
  • Packaged best practices and detailed methods and tools for sourcing and procurement category optimisation and purchasing function performance
  • Distinctive multi-lever transformation, a holistic transformation approach combining multiple improvement levers such as lean, digitisation, and organisational alignment

Selected case studies

Combating Rising Costs at a Financial Incumbent

Combating Rising Costs at a Financial Incumbent

Breaking the tech cost curve while customers and regulators drive higher demand calls for a structural approach.

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Selected perspectives

An Economic Down-Turn Creates Momentum to Streamline the IT Portfolio

An Economic Down-Turn Creates Momentum to Streamline the IT Portfolio

November 2012

Take advantage of a challenging economic climate to construct a more valuable and less risky IT project portfolio.

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Preparing for Economic Decline: Proactively Increasing Cost Flexibility

Preparing for Economic Decline: Proactively Increasing Cost Flexibility

February 2020

The possibility of another global economic decline cannot be denied. Can companies proactively plan to soften the impact…

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