Not all performance opportunities are equal. We focus on identifying the right areas to focus on, reconfiguring the organization and building the right capability so that inefficiencies do not creep back in, and protecting the strength of the organization in the process. We assist clients by deploying a proven performance improvement approach, leveraging powerful industry and functional knowledge to design, plan and deliver robust cost and performance improvement programs.
We recognize no organization or situation is exactly alike — each program is developed in alignment with the specific needs of our clients in relation to pace, tone, organization culture and the degree of capability development required. L.E.K. has successfully delivered savings consistently in the range of 15-25% using this approach.
As markets, industries and business models continue to evolve, many organizations face pressures on margin and shareholder value delivery. An increasing focus on the cost competitiveness and performance of business-wide operations is essential to remain relevant and compete 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, identifying, prioritizing and delivering cost and performance improvement initiatives can be difficult for an organization and its leaders as they deal with the day-to-day operational challenges inherent in the business.
How we help
We assist organizations by deploying a proven performance improvement approach, leveraging powerful industry and functional knowledge to design, plan and deliver cost and performance improvement programs. Five key elements make our cost and performance improvement approach highly distinctive:
- Recognition that all costs are not equal: Costs should be proactively managed and treated as a portfolio of investments that provide a return to the firm, some of which can be reduced aggressively without harming strategy, and 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 with and shared with client personnel.
- Delivery plan: We drill down from findings of what and where the improvement opportunities are to a delivery plan, and we have extensive experience in supporting the implementation of improvement programs.
- Collaborative but challenging: We understand that achieving results requires engaging with those who “do the work.” We will do the vast majority of work at clients' sites, and with the client – but we will not be captured by ‘old thinking.’ 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 complimentary 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