pushing the reset button on performance

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Pushing the RESET Button on Performance A.T. Kearney research reveals that companies implementing sweeping transformation programs improve shareholder returns by 3x versus business as usual

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Page 1: Pushing the RESET Button on Performance

Pushing the RESET Buttonon PerformanceA.T. Kearney research reveals that companies implementing sweeping transformation programs improve shareholder returns by 3x versus business as usual

Page 2: Pushing the RESET Button on Performance

Challenges today’s companies face

Overlycomplex

businesses

Overlapping mergers

Harshcomps to

competitors

Decliningbusiness

and slowinggrowth

Freshleadership

visions

Activistshareholders

Stalledrestructuring

programs

Page 3: Pushing the RESET Button on Performance

It's time to RESET your business

Solve for success now, rather thanmake comparisons to the past

Attack costs embedded acrossand between functions

Put control in the hands of yourexecutive team, not outside activists

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3

Page 4: Pushing the RESET Button on Performance

Emphasis onconnectingfunctional

improvementprograms

Led by thesenior

executiveteam

RESET bundles all of ourimprovement programs

Fast, broad,and crossfunctional

Page 5: Pushing the RESET Button on Performance

Business as usual (BAU) restructuring fails to sustain gain (Average sample index di�erence from S&P 500)

*Indexed to announcement of restructuring program. Time period runs through end of program external reporting or 1 August 2014, whichever is first. Source: A.T. Kearney analysis of 20 corporate restructuring programs based on public statements and data; BAU restructuring defined as 3+ programs over 7 years

RESET programs translate into shareholder value

BAU

Integrated

1.1x

3.4x*

3x di�erence

Page 6: Pushing the RESET Button on Performance

Major Telco: $2 billion+ in productivity benefits

Global Retailer:$800 million EBITDA improvement target

Global Consumer Goods Company:$300 million+ in cost savings$3.5 billion increase in shareholder value

RESET’s proven track record

Page 7: Pushing the RESET Button on Performance

BAU RESET

Our RESET capability is di�erent

Patchwork programsUncertain timeframe

Integrated and unifiedAccelerated timeframe

Sporadic reviewsProgram management

Committed collaborationAdvocates for culture change

Identify opportunitiesSet goals

Help put the change in actionImmediate impact, growingadvantage

Project-based savingsFragmented reporting

Cost intelligenceAuditable trace to P&L

Holistic – intersecting costsTrue business simplification

Basic functional improvementBenchmark driven

Set-up

Approach

Transparency

Consultant’s role

Executiveengagement

Page 8: Pushing the RESET Button on Performance

For more information aboutPushing the RESET Buttonon Performance, please visit:www.atkearney.com/organization-transformation/transformation