pushing the reset button on performance
TRANSCRIPT
Pushing the RESET Buttonon PerformanceA.T. Kearney research reveals that companies implementing sweeping transformation programs improve shareholder returns by 3x versus business as usual
Challenges today’s companies face
Overlycomplex
businesses
Overlapping mergers
Harshcomps to
competitors
Decliningbusiness
and slowinggrowth
Freshleadership
visions
Activistshareholders
Stalledrestructuring
programs
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
12
3
Emphasis onconnectingfunctional
improvementprograms
Led by thesenior
executiveteam
RESET bundles all of ourimprovement programs
Fast, broad,and crossfunctional
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
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
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
For more information aboutPushing the RESET Buttonon Performance, please visit:www.atkearney.com/organization-transformation/transformation