Problem
A medium sized enterprise with agencies in 21 cities (some of which franchise/ licensed partner model) across 3 European countries was on the verge to bankruptcy and required immediate support in strategy, planning, general guidance, and value case management for downsizing operations, focus on (financially) value adding services and driving cost effectiveness (while not negatively affecting overall customer experience) to eventually stabilize the business and regain financial health and performance.
Solution
- A fast-track assessment of the corporate environment focusing identification of value, cost, and profitability drivers on entity, operations, as well as product/ service levels, including respective root cause analyses and perspective/ favorability of turn-around vs. let go
- Subsequent value case and implementation planning for operations, product portfolio, and HR changes
- Guidance and support in actual downsizing (e.g. in negotiations with landlords, staff, and franchise partners in the run of closure of 4 agencies (1 of which franchise based)
- Restructuring business case management and reporting throughout the downsizing process
- Concept plan for cost reduction for both headquarter and agencies
- Training planning and execution for both leadership team at headquarters as well as locations’ staff in areas of project management, performance improvement, and basic methods and techniques of LEAN/ continuous improvement
Results
- Duration of initial assessment: 5 weeks
- Duration of core program execution: 6 months
- Agencies before/ after program: 21 / 17
- Value case managed for core program (6 months) and further ongoing (+3 months) cost reduction program
- Actual downsizing cost as % of budget per business plan/ value case: 96%
- Cost reduction plan to reduce OPEX by 21,8% without affecting business volume, quality of output, or customer experience/ satisfaction
- Implementation of performance improvement pipeline to collect, prioritize, and manage process improvements centrally
