Business Transformation
Whether it be strategic, financial, or operational transformation, a disciplined approach and proactive change management is essential to beating the odds. Being former operators with a strong track record of driving turnarounds, we have experience helping clients embark on transformation programs before a crisis situation develops, carry out turnarounds when facing a strategic or operational crisis, and restructure businesses facing an existential crisis.
Key principles we follow in client transformation programs include:
Prioritize Relentlessly
Leveraging data and analytics, arrive at the short list of priorities that generate the most value
Engage and Enlist
Both the senior leadership and a cross-functional team to drive transformation
Move Fast
Activate no-regret moves and deliver quick wins to rally broader support
Govern Lightly
Focus less on process and more on accelerating decision-making, managing scope creep, and execution
Our Services
Cost Transformation: We work with clients on cost transformation efforts less to tactically reduce costs, but more to release precious resources to drive growth and reposition for sustained value creation. We help organizations avoid the following traps:
- Approach cost cuts as a one-time effort, wherein costs come back
- Cost cuts are applied uniformly across resulting in cutting costs in the wrong places, i.e., future engines of growth
- Hard-to-reach cost areas such as fixed costs or product and service specifications are left alone, resulting in middling cost improvements, and finally
- Targeted investment or process improvement opportunities are missed, whereby historical organization weakness and complexity issues are not addressed
The five guiding principles of a winning cost transformation program are:
Complexity Management: Most successful organizations struggle with complexity – a larger product portfolio, more layers in the organization, convoluted business processes, and an explosion of IT systems and tools, sometime a result of acquisitions all contributed to the success but sooner or later result in higher costs, slower growth, and loss of competitiveness. By understanding the sources of complexity, quantifying the trade-offs, we identify the opportunities to simplify across the four interconnected dimensions of organization, product, process, and systems and tools. As part of the organization and process revamp, we build in barriers to the inevitable return of complexity. At its heart, our complexity reduction work enables the following:
- Refocuses the organization on strategic priorities
- Simplifies processes and eliminates non value-added activities, and
- Strengthens the organization by building new capabilities
Source: McKinsey Global Survey, 2021
