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

Design of New Organisation Structure to Both Support Growth and Economies of Scale in the Energy Sector

Design of New Organisation Structure to Both Support Growth and Economies of Scale in the Energy Sector

A business division of one of the world’s leading utility companies within renewable energy needed to align its organisa…

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Consolidation Strategy for a Major Energy Company

Consolidation Strategy for a Major Energy Company

The power generation business in one of Europe’s major energy companies was established as a separate business area and…

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Combating Rising Ops & IT Costs at a Financial Incumbent

Combating Rising Ops & IT 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

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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Funding Digital Demand Explosion: How to Reduce IT O&M Cost

Funding Digital Demand Explosion: How to Reduce IT O&M Cost

May 2021

As companies are experiencing a significant increase in the demand for digital solutions, they need to find ways to fund…

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Measuring Digital Success: Performance & Health

Measuring Digital Success: Performance & Health

February 2021

Measuring digital success can help executives track value creation and prioritize where to focus next. Paradoxically, so…

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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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