Right Sizing the Right Way
Their experience in working with fast-moving and dynamic businesses like ours was clearly evidenced through their strong project management and attention to detail.
Confronted with the necessity to cut costs most leaders see two main options: reducing costs equally across multiple functions, say 5% or, alternatively, significantly reducing the size of one or more function in isolation – typically back-office functions where the linkage to revenue generation is not always clear. But there is a third-way. A way that only makes sense when the company has a well thought-through strategy. A way that informs what activities to stop, reduce, start or improve: strategy right-sizing. When leaders embrace strategy right-sizing they see activities and cost that don’t support the right to win in chosen markets. Whilst our approach to supporting clients is always unique because every strategy is different, there are some common elements to our approach:
Key Enablers – determining the key activities that need to be performed and to what standards in order to execute the strategy in the right way. Product innovation and design, superior procurement, customer insight, branding and marketing, for example. Leaders need to ensure the company has sufficient resources to enable effective and efficient performance and should avoid cutting costs in these areas, where possible.
Differentiators – determining what activities differentiate the company’s value proposition and customer experience from competitors. Leaders need to distinguish between competitive table-stakes and meaningful and valued points of differentiation – from a customer perspective. Cost reduction or repurposing is possible where customer’s needs have changed.
Misaligned or Overserved – determining areas where service levels can be reduced and where resources add little or no value to the company’s value proposition and customer experience. Examples might include legacy performance monitoring and systems, unnecessary quality control, unwanted product or service enhancements.
We work with leaders to help streamline their operations in order to make them bigger, better, faster and stronger.