True cost transformation is about simplifying, refocusing and strengthening your organization so you can pursue growth and provide a better customer experience. Our approach is both holistic and customizable, enabling you to cultivate, reward and continually improve a sustainable cost management culture.
How We Can Help
Zero-based Budgeting (ZBB)
Be certain that every dollar supports your strategic priorities
Change the culture
Instill an ownership mindset across the organization
Build new capabilities
Achieve continuous improvement by changing behaviors and ways of working
Free up cash
Channel funds to the initiatives and investments that will power your growth
A successful zero-based budgeting (ZBB) program relies on four repeatable components to achieve continuous cost improvement:
Target-setting based on granular KPIs
Driver-based budgets negotiated between dual owners of costs
Rigorous tracking and monitoring
And, the identification of a steady stream of savings initiatives and breakthrough ideas that challenge the status quo.
We have helped companies in many different industries successfully execute ZBB programs, freeing up, in some cases, hundreds of millions of dollars to re-invest in the business. When combined with zero-based redesign the impact can be even more transformative. In fact, when companies use ZBB and ZBR together they achieve savings of 25% or more for targeted functions and activities, since this combined approach extends the clean-sheet view of your business across your operating model, processes and workflows.
Zero-based Redesign (ZBR)
Zero-based redesign (ZBR) helps you focus on the activities that fuel your competitive advantage, and eliminate many of the ones that don’t. Traditional efforts to streamline and simplify settle for incremental changes to the status quo, and savings tend to be temporary as costs creep back in. ZBR, in contrast, is a one-time effort that sets a bold ambition defined by the activities that are critical to delivering what your customers value most about you. Organizational structure, governance, accountabilities and processes are integrated to meet the needs of your customers and optimize the efficiency of your front line. The result: a structured transformation journey that delivers value from Day One and propels you to your ideal future state. When combined with zero-based budgeting the impact is even more transformative, as your entire organization adopts a new mindset and new behaviors around cost, continuously striving for maximum efficiency and greater savings.
Lower your costs
Achieve dramatic cost savings of 20%-40%
Boost shareholder returns
Raise profitability, free up resources for growth and improve competitiveness
Become a simpler, flatter and more efficient organization
Focus on what counts
Remove obstacles so employees can tackle the activities that matter most to customers
Complexity is a natural consequence of success, and some complexity is desirable. A useful way to analyze the complexity in your company–and to separate complexity that’s beneficial from complexity that hurts the business–is to begin from a base of zero. We’ll work with you to determine your zero-complexity costs, and then assess the costs of adding complexity (in the form of, for example, product variety) back in. Our battle-tested approach to complexity management has enabled companies in many different industry sectors to capture maximum value using a repeatable model that keeps complexity out while improving profitability and customer centricity.
Focus your R&D expenses, manage products better, gain supply chain efficiencies, and more
Enhance service levels
Concentrate on key customers and increase your competitive differentiation
Bring more focus to product design and quality
Devote more attention to “hero SKUs” to increase sales