How can leaders quickly and radically reduce costs without undermining the spirit and capabilities of the organization?
In difficult times, companies often take a “peanut butter approach” to cost reduction and demand that everyone share the pain equally. By basing cost-cutting efforts on clear and shared strategic priorities, leaders can make smart choices that ultimately build capabilities and enable efficiency.
Situation
Our client is one of the world’s largest technology companies, a member of the Fortune 500, and a leader in multiple consumer and enterprise product segments. During a growth phase, the client rationalized its acquisitions, built capabilities globally and implemented innovative systems to elevate the organization to a new level of sophistication.
Challenge
Success in this growth phase required that the company align processes and systems, build a platform for scalable growth and increase the ease of doing business for clients – all at a lower overall cost. Trium engaged operations leaders in a process to identify short-term, high-impact opportunities which would reduce operational complexities and create greater accountability for results.
Resolution
Underlying this work, Trium helped to define and address the shifts required to align, equip, and mobilize executives to take coordinated action on their decisions. This offered new insights to internal analytics, enabling executives to reconfigure organizational capabilities and transform the organization at a lower overall cost. The organization delivered approximately $30M in cash savings and reduced the overall cost structure by $100M.
Sustainable results were achieved by driving commitment from senior executives to focus on four critical shifts in mindset and organizational practices: 1) from a focus on bookings to a focus on managing margin targets; 2) from a focus on the enterprise customer to a focus on capturing market opportunities in all customer segments; 3) from a focus on selling products to a focus on selling multi-product solutions; and 4) from a focus on corporate, business unit and sales organizations planning independently to a focus on achieving strategic interlock.
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