Principals at 3HA have led several large-scale cost transformation and restructuring efforts, including for a Fortune-100 consumer electronics OEM, an emerging market communications services provider, and a large specialty retailer among others. One of these efforts is highlighted below.
Client Situation
A fast growing ~$400M recurring revenue emerging market communications services provider faced regulatory hurdles that caused significant disruption to business as usual. Under these uncertain circumstances, investors demanded a dramatic reduction in operating cost base and focus on the most strategic business units.
Project Approach
In order to avoid apportioning cost reductions uniformly across business units and functions, the approach revolved around the following 3 principles:
- Strategy alignment: Prioritized geographies based on existing market share and future profit pools
- Digitization: Incorporated radical changes to business processes shifting go-to-market approach increasingly towards online vs. offline
- Explicit targets and tracking: Established and tracked productivity targets for SG&A and service costs
Outcomes
As a result of this approach and process, differential costs reduction targets were set across regions in-line with the profit pool and $100M+ in annualized cost reductions were achieved.