Performance Improvement that lasts
As markets, industries and business models continue to evolve, many organizations face margin pressures on margin and struggle to deliver shareholder. A strong focus on cost competitiveness and operational performance is essential to remaining relevant and competing in the new economy.
Organizations embarking on "cost and performance" projects typically assess business units spanning multiple functions (operations, go-to-market, back-office, etc.) in order to uncover opportunities for value creation. However, undertaking cost and performance improvement initiatives can be difficult for business leaders who are faced with the day-to-day operational challenges inherent in the business.
That’s where L.E.K. comes in. We identify the right areas to focus on, reconfiguring and strengthening the organization and building the right capabilities so that inefficiencies do not creep back in. We use a proven performance improvement approach, leveraging powerful industry and functional knowledge to design, plan and deliver robust cost and performance improvement.
We recognize that no organization or situation is exactly alike. That’s why each program considers the specific needs of our clients in relation to pace, tone, organization culture and the degree of capability development required. L.E.K. has consistently delivered savings in the range of 15-25% using this approach.
Our approach to performance improvement
Five key elements make our cost and performance improvement approach highly distinctive:
Recognition that not all costs are equal: Costs should be actively managed and treated as a portfolio of investments that provide a return to the enterprise. Some costs can be reduced aggressively without harming strategy, while others which should be protected. Although lowering total overhead cost is one, often appropriate, organizational goal, significant value can be created by shifting the mix of overhead investments away from "utility-like" costs and into core capabilities that support strategy execution.
Philosophy of evidence over opinion: While previous experience informs the starting point, the correct solution is deduced from the data. The evidence base is collaboratively built and shared with the client.
A delivery plan with implementation support: We use our findings on improvement opportunities to develop a delivery plan. Our extensive experience in improvement programs takes us beyond planning to actual implementation.
Collaborative but challenging: We understand that achieving results requires engaging with those who do the work. We do the vast majority of our work at clients' sites, and with the client, but we remain objective. We will be respectful but challenging.
Track record of success: We have successfully delivered multiple organizational cost reduction transformations, with savings consistently in the range of 15-25%.
We are able to leverage this robust approach across a broad range of client scenarios, drawing in complementary capabilities and expertise, as needed, including:
- Commercial excellence – ensuring your commercial engine is firing on all cylinders
- Dynamic performance improvement – identifying the critical, controllable value levers in your business
- Cost optimization – systematic review of opportunities for sustainable cost-out opportunities
- Growth & edge strategy® – effective strategies to drive sustainable incremental growth
- Organizational strategy – creating a fit-for-purpose organization to enable high performance