Boosting performance is necessary for all companies to tackle fierce market competition, price fluctuations, changing consumer expectations, new regulations, or remote working, which are all becoming the "new normal". Organizations must master their operating income for more flexibility to mitigate the impacts of these market forces.

With the current challenging and unprecedented economic environment, investigating performance levers has never been more vital:

  • Various and uncertain demands require companies to drive their break-even point down and encourage cost flexibility
  • Revisiting the organizational structure by increasing autonomy and simplicity will bring agility and additional benefits
  • Complexity has risen over time; businesses must define and manage it through complexity cost calculations
  • Increasing supplier inconsistencies raise the question of efficient inventory management, which is needed to ensure both cash balances and business continuity
  • Always be mindful of safety and the new mandatory sanitary measures, which must be implemented following the COVID-19 crisis.

Two golden rules to achieve your targets

BearingPoint has developed an innovative approach to improve performance based on two primary principles.

Develop a zero-waste mindset

Waste hunting is a productivity essential that consists of identifying and reducing all types of waste. Leaders should see it as a philosophy to be adopted by all stakeholders, securing the basics of operational excellence and preserving the four aspects of performance: safety, quality, costs, and delays.
Digitalization, organization, internal complexity reduction and operational excellence levers are usually investigated. It often appears that levers derived from operational excellence account for 30 to 40% of total savings.

Ensure resilience through a company-wide commitment

If top-down guidance is necessary to set the ambition and create a sense of emergency, bottom-up involvement in identifying performance levers is essential. People on the field know where problems are, and they are best placed to identify performance levers.

Exceptional circumstances require an innovative and people-centric approach

BearingPoint has developed a proven approach – the Booster Methodology – which, thanks to people empowerment, can enable companies to achieve tangible and sustainable performance results. We use a four-step sequence that is key to mobilize all stakeholders toward one common goal: elaborate the most relevant performance roadmap.

  • Two remote phases to prepare and allow time for analysis, thereby ensuring on-site effectiveness and mature decision making
  • Two on-site visits characterized by workshops involving employees and final-result presentations to secure managers’ commitment

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This methodology has proven itself in providing specific advantages:

  • The approach (phases duration, on-site visits) can be tailored
  • The objective is to open all possible doors before looking at potential constraints (no taboos!)
  • The standard method across various business locations enables the delivery of a homogeneous and consolidated roadmap

A worthwhile investment on both human and economic levels

Sustainable savings

  • Identifying all levers types generates large-scale savings for our clients in various industries: up to 15% of the annual cost baseline for a food industry leader and 25% for a materials manufacturer. Studies have shown that during implementation, traditional cost-cutting approaches generate about 30% of the expected savings. Thanks to the strong involvement during the design phase, around 80% of the estimated savings were achieved with our approach.
  • Our approach addresses cash management risks through ROI calculations and cash neutrality, enabling thoughtful project prioritization and realistic investment decisions. 

Managers’ empowerment

  • Working as a joint team on our projects promotes manager-ownership of the levers and roadmaps, accelerating the implementation phase.
  • Unlike top-down cost-cutting approaches, which often tend to be traumatic experiences for the teams, the Booster Methodology enables the development of a positive performance improvement mindset and motivates managers to implement the levers.

The Booster Methodology requires a necessary time investment to raise the right questions and take decisions. Moreover, compared to traditional cost-cutting approaches, it showcases reasonable savings, which are more likely to be achieved. The Booster Methodology helps companies from a broad industry spectrum to sustainably recover from the COVID-19 crisis.

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