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A Consumer Packaged Goods Company Puts Cost and Complexity Reduction at the Heart of Its Transformation

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$
B

market cap increase

$
B

cost reduction

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Although it was the global market leader in its category, a consumer packaged goods company faced changing consumer habits and other headwinds. Senior leadership saw that a major transformation was needed, one that would reduce costs and complexity and improve how work gets done. Previous cost reduction efforts, while successful, had not addressed the true drivers of cost, but rather had left the workforce fatigued; bureaucracy and risk-aversion were preventing the company from operating as nimbly as it needed to.

We helped the company define its ambition and initial architecture, and pursue a four-part transformation designed to reduce costs by 20%. The creation of a central transformation office helped keep the mission on track and leadership aligned. The result was a new global operating model that reenergized global growth; $1 billion in cost reductions were identified, with $300 million realized in the first year. And the company’s market cap increased by $26 billion since the transformation program was announced.

We take our clients' confidentiality seriously. While we've changed their names, the results are real. 

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