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What We Do

Without proposing additional capital expenditure, we increase Return on Invested Capital (ROIC) in our client’s businesses by improving both gross and operating margins, as well as reducing invested capital.

We are not report writers. Rather, the changes required to realize financial goals are made during our program. We design and embed new management processes. We provide tailored, formal training and education for managers at all levels as they adopt new process and discipline. Weekly evaluations track quantifiable progress in real time. Our programs are designed to:

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Who We Are

Without proposing new capital expenditure, we increase the Economic Spread (ES) of our client’s businesses by improving their gross and operating margins as well as reducing invested capital. Key program elements are designed to:

1Invigorate the Performance Planning, Reporting and Review process
We test, validate and lift performance standards by observing work in progress. We recover performance losses, including speed loss, downtime, quality defects, yield loss, and excess inventory. Tailored planning and reporting tools, together with powerful review disciplines are central to our approach. We work side by side with the management team, at all levels, until review discipline is established and continuous improvement efforts are fully focused.
2Create an Effective Pricing and Margin Management Process
We quantify the amount of production capacity lost to profitless products and services. We establish standard operating procedures and disciplines for systematically controlling price and margin. In conjunction with commercial managers, we review commercial contracts and assess the justification for sustaining weak or negative margins. We assist to revise/establish standard margins at the product/SKU and customer level.
3Optimize Capacity Utilization through Effective Sales and Operations Planning (S&OP)
We will introduce formal planning, reporting and review processes aimed at realizing the best match between profitable demand and productive capacity over time. This extends to labor, materials, property, plant, equipment and utilities. We will work with management to remove excess production capacity during the program or alternatively, to load it with new profitable demand.
4Integrate Operational and Financial Performance Objectives Across Function
We sustain clear line of sight between specific functional goals for improved speed, quality and productivity and financial goals for Return on Invested Capital (ROIC). Participants in the operational review process will understand the causal connection between operating performance goals and budgeted operating profit and capital efficiency outcomes. We establish the basis for organizational accountability and responsibility.
1By Installing Management Reporting & Review Disciplines:
We increase the speed of production processes at the constraint. Recover losses to downtime, slow running, quality defects, and poor yield . Improve service performance. After optimizing operating performance, we distill and quantify excess operating capacity.
Quantify the amount of capacity currently wasted producing profitless products and services at the operating margin. Structure tactical plans to reprice or rationalize product/service offerings at the customer level. Critically assess and correct onerous commercial contracts. Correct weakness in commercial systems and disciplines surrounding repricing. Establish standard operating margins as a primary driver of performance review. Distill excess economic capacity.
Remove excess production capacity throughout the production network or load it with new profitable volume.
Reduce Sales, General and Administrative (SG&A) expenses by introducing effective resource planning and work management systems
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Client Reference

Soren Schroeder

CEO Bunge Inc.

In Food & Ingredients, our operational and commercial excellence programs drove improved results with an estimated $20 million P&L impact during the quarter. These programs are a key part of our strategy to increase the share of EBIT generated from Food & Ingredients, and they are especially important in the face of market headwinds
“The key issue is never strategy, structure, culture, or systems.
The core of the matter Is always about changing behavior.

John P. Kotter
The Heart of Change, 2013

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Get in Touch

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a discussion with our director.