TAKE OUR FREE SELF ASSESSMENT
It starts with a conversation about 80/20 and True Profitability, with Patrick, Roland, Pedro, Roger or Steve (or one of our partners in US or Europe)
We can talk you through a self-assessment, providing guidance to the results as well as insights from what we have seen elsewhere
Then at some point we need to get our hands onto data. We run an initial series of workshops underpinned by analysis. This will provide powerful insights and the workshops will enable you to prioritise actions and align business leaders
Our services are designed to deliver high impact with a light touch. We equip our clients by transferring 80/20 knowledge and capabilities so they can operationally sustain initiatives without us. We offer three main ways of working with us :
Workshop Services: “how to” training and coaching / facilitation that is sufficient for the business to go ahead under its own power
Enablement Services: Above + “hands on” analysis and interpretation support to drive accountable change as you execute over the next 6-12 months, tracking progress and delivery of actions
Advisory Services: Periodic, ongoing consultation as desired / needed to further transform and drill deeper into important themes such as:
Maturity and complexity of customer and product portfolio. This is the core of the problem and solution. Variety sells, but over time the variety can become value destroying – unfortunately most organizations cannot see that erosion in margins
Functional/BU alignment. Not every organization operates harmoniously; sometimes TP can be used as the catalyst for dialogue (and ultimately alignment) or it can be piloted and proved with 80/20 believers before rolling out
Access to (reasonable) quality financial data. For some we work at revenue data initially, whereas for others we can go deeper quicker. Don’t let nervousness about your data delay taking action – TP adapts to what there is available and of sufficient quality
Business Unit, Corporate Structures and System Configurations. Every organization is built differently. Although it would simplify the process if everyone was standardized, we find modelling the nuances and differences are core to generating the valuable insights and game changing performance drivers
The True Profitability approach is extremely adaptable to your needs and circumstances. It can be used as a strategic assessment providing performance insight; or as a tool to drive commercial innovation regarding precision pricing, sales focus and portfolio alignment; or even digging into the operational detail creating dynamic cost-to-serve insights and decision support.
One global FMCG business engaged us, having completed a SKU rationalisation programme to address performance and complexity with an MBB strategy house. Despite reducing from 1250 to 1000 SKUs, the client found that its margin after conversion (MAC) was 5% worse than its direct competitors. So we used our True Profitability approach to build a Complexity Management Tool, uncovering the waste and complexity opportunities across the portfolio, identifying anomalies across the value chain and creating a complexity score per SKU (which enabled the business to challenge the margin of SKUs).
Another chemical manufacturer, whilst managing long term volume decline in its legacy film divisions, asked us to use the True Profitability approach to quantify the cost of complexity as volumes dropped, challenging the businesses assumptions around MTO/MTS, MOQ and product substitution.
CASE STUDY