Today’s disruptive markets are unforgiving. EGNYT’s approach equips you with the strategy to fuel earnings growth and outperform the competition.
From targeted solutions that yield an immediate impact to broad transformation programs that redefine how work gets done, EGNYT can help you take every function within your company to new levels of performance.
To hit earnings targets, rapidly fund growth, out-invest competitors or just survive, companies often make eviscerating cost cuts. But that can put your company at risk and hobble future performance. Accelerated Transformation delivers the urgent cost, cash, capital and revenue benefits you need while simultaneously building the muscles and owner mindset that will power your long-term, sustainable growth, whether you are struggling to meet short-term financial targets you need to rapidly fund growth and out-invest competitors.
Zero-Based Budgeting (ZBB) and Zero-Based Organization (ZBO)
Companies typically cut costs by combining line by line through the budget or via organizational restructuring yet the best results come from doing both. Used together, we help you through Zero-based Budgeting scrutinize every dollar and radically revamp your operating model to transform your company and deliver significant long-lasting cost savings, and through Zero-Based Organization streamline functions and produce efficiencies, freeing up resources for where they will count most.
Zero-based budgeting (ZBB)
is a sustainable cost philosophy and a continuous, bottom-up approach for rigorously resetting the cost basis, which frees up capital to reinvest for growth. ZBB was introduced in 1970 and became popular, only to be abandoned by most corporations due to wrong implementation. Over the past decade, as companies have increasingly been disrupted and more of them file for bankruptcy, ZBB regained popularity across industries, in private equity firms portfolio companies and in small and large corporation under both public and private ownership, as companies become aware of the benefits.
ZBB uncovers cost savings, allowing business to reinvest savings in innovative and sustainable growth opportunities. It’s an iterative process to rigorously review every dollar in budget and to optimize financial performance on a monthly basis as it builds a culture of cost management across the organization. ZBB looks for the most efficient return on spending from the bottom up instead of comparing this year’s spending to last year’s budget.
For example, in private equity portfolio companies, ZBB considers return-on-capital as a key metric, and eliminates unproductive costs, allowing portfolio managers to reallocate capital to growth in a standardized and replicable manner which can be scaled across all portfolio companies, ensuring aligned incentives, control and processes.
While companies are generating significant savings with ZBB programs and impressing their shareholder, most results have been limited to the cost side of the equation. But to achieve the greatest value, ZBB programs need to be tightly integrated with the company’s strategy and with growth levers for the business instead of focusing purely on cutting costs.
Zero-Based Organization (ZBO)
For organizations and industry incumbents adopting game-changing technologies such as machine learning or IoT, ZBO can help unleash the full value of their investment.
When undergoing massive transformation, it is difficult to have a clear map of the services that drive core business and even harder to have protocols in place for reevaluating services and activities to eliminate those that are no longer required. As a result, companies may end up with duplicative or unnecessary functions that can erode value. Unlike production of goods where such waste is physical and can be measured, in administrative and functional processes is hard to keep it in check.
ZBO is designed to identify and eliminate organization-based waste by simply eliminating redundant and unproductive work. It forces companies to rethink the activities they carry out from the ground up and evaluate them based on Importance and ROI. Like ZBB, ZBO involves working from a clean slate to identify the way business will be done by zeroing in on the functional and administrative processes and activities of the company. Companies can then clearly differentiate between baseline essentials and discretionary activity and measure the actual costs and value of the two kinds of work. By doing this, we help you eliminate the hassle and complexity of outsourcing or moving soon-to-be irrelevant work to a shared-services center.
We can help you improve organizational performance from the top to the bottom of the org chart which improves your company’s performance and becomes a better place to work by ensuring your entire organization can deliver on your strategy. We help you develop optimal operating models, address capability and talent gaps, improve decision effectiveness, simplify organizational structure and strengthe culture and leadership.
- We tightly link the zero-based budgeting capability to your strategy, ensuring that every dollar works toward your strategic priorities
- We challenge the status quo and think boldly and pragmatically to help you achieve your aspirations
- We go beyond the nuts and bolts to build new organizational capabilities, focusing on people, culture and behaviors to drive engagement and unlock organizational energy.
- We help you eliminate ineffective, nonessential spending, and redirect the savings to the investments that will power your growth. Whether you need a sustained cost transformation effort, want to explore the substantial advantages of ZBB or ZBO, or need to accelerate a transformation to quickly achieve cash, cost, capital or revenue benefits, we can help
- We fundamentally change how work is done by simplifying, eliminating low-value activities and harnessing Innovative digital tools and templates to accelerate the transformation
- We employ a collaborative process executed with you, not to you and partner with you to share the risks and rewards of your transformation. We work with you to cut fat and build organizational muscles to power rapid, sustainable performance led and owned by your team
- We help train your teams in agile and digital capabilities, creating a sustainable competitive advantage and focus on cutting fat and building the organization needed to drive rapid and sustainable performance
RESULTS YOU CAN EXPECT