Contains research on the battle between economies of scale and spiraling growth in complexity costs, as well as an overview of Wilson Perumal & Co. and its proprietary approach to complexity management.
Mastering Finance in Business
The role and impact of financial management on strategy, operations, and business performance
A Deloitte Research Global Manufacturing Study
This was a school project the required me to go through a business simulation and give an assessment of the current conditions followed by suggestions for improvements.
Five key elements that drive the value of your businessMatthew Wirgau
Use These Five Fundamentals to Increase Your Business Value
Every business owner, Board of Directors, CEO, President, or entrepreneur should know the value of their business.
Because it’s hard to accurately determine the value of a business, many just ignore it. Too often, business owners get a mistaken view of value when they hear the price that another business owner received. I call this “the Valuation Gap”.
Business value is a combination of profitability, future certainty of profits, and the transfer-ability of the profits to a new business owner.
Knowing the value of your business is a prerequisite to good management.
Even if you have no intention of selling and you will be passing your business on to your next generation, you should know its value.
Going through the valuation process gives insight into your company’s historical performance and its potential future.
If you know the value of your business, you will be more prepared to make effective management decisions that will make it more successful in the future. If you don’t know the value of your business and what is driving its value, you could very easily end up doing things and making mistakes that will destroy its value over the long-term.
Mastering Finance in Business
The role and impact of financial management on strategy, operations, and business performance
A Deloitte Research Global Manufacturing Study
This was a school project the required me to go through a business simulation and give an assessment of the current conditions followed by suggestions for improvements.
Five key elements that drive the value of your businessMatthew Wirgau
Use These Five Fundamentals to Increase Your Business Value
Every business owner, Board of Directors, CEO, President, or entrepreneur should know the value of their business.
Because it’s hard to accurately determine the value of a business, many just ignore it. Too often, business owners get a mistaken view of value when they hear the price that another business owner received. I call this “the Valuation Gap”.
Business value is a combination of profitability, future certainty of profits, and the transfer-ability of the profits to a new business owner.
Knowing the value of your business is a prerequisite to good management.
Even if you have no intention of selling and you will be passing your business on to your next generation, you should know its value.
Going through the valuation process gives insight into your company’s historical performance and its potential future.
If you know the value of your business, you will be more prepared to make effective management decisions that will make it more successful in the future. If you don’t know the value of your business and what is driving its value, you could very easily end up doing things and making mistakes that will destroy its value over the long-term.
The purpose of the presentation is to discuss some management principles learnt in-class to assess Dollarama. In this presentation, functional departmentalization, SWOT Analysis and Social responsibility were looked into.
This was also a requirement for "Introduction to Management MGT-1000-Y. 2013
Research shows that the most successful companies use benchmarking as a key management process and information tool. As your company develops its annual strategic plans and budget, it helps to understand where you stand relative to your peers and competitors. Deviating from benchmarks isn’t good or bad: But it is important to know why and by how much you deviate in order to test and justify your decisions.
OPEXEngine Founder and CEO Lauren Kelley delivered this “Data-Driven Decision Making” presentation to an audience of over 100 CFOs at an invitation-only event hosted by General Catalyst Partners, a Boston-based venture firm on 19-Oct-2011.
Reviews the major alternatives open to business executives during mergers, and the associated post-merger returns for companies adopting each of the three main alternatives.
The research suggests that the choice of corporate brand strategy is value relevant, and may play an important role in facilitating a smooth process of post-merger integration.
150408 wpc business simplification overview v fDavid Toth
A perspective and guide to business simplification in the 21st century. Companies may need to consider first simplifying in order to grow and/or achieve their desired level of earnings.
Bigger is always better, right? Not always, especially in the world of business. The biggest challenge facing companies today is not how to continue growing, but how to grow profitably. We take a look at a few key things that separate those that simply grow and those that grow profitably.
WP&C's Complexity Workshop helps identify the most disruptive complexity drivers in your business, quantify the size of the opportunity, and chart a course to improved performance.
Mergers and acquisitions (M&A) are a critical enabler of strategy for many companies seeking to grow market share, acquire new technologies, or capture the advantages of scale. Unfortunately, M&A are a risky proposition, with more than half failing to create the value promised. Evidence suggests that the cost of complexity added by M&A frequently out paces any value created. This presentation delivered by Chris Seifert at the Chief Strategy Officer Conference, examines how a select few companies have been able to defy conventional wisdom, turning M&A into a strategic weapon, by systematically eliminating non-value added complexity in their day-to-day operations. - See more at: http://theinnovationenterprise.com/summits/chief-strategy-officer-summit-new-york-2014/schedule#sthash.0cmEWQTm.dpuf
Andrei Perumal, managing partner at Wilson Perumal and Company, presents "Simplify to Grow", how to build scale, speed and profitability in a complex world. This presentation was originally delivered during the 2014 CSO Conference in San Francisco, California.
Stepping into a role which requires business finance knowledge? Here is a short guide offering advice, tools, and expertise that you will need to equip yourself with to be successful. Check out our Diploma in Business Finance for more.
How Healthy is Your Company’s Product Portfolio?
Similar to your annual doctor’s check-up, your product portfolio needs a check-up too. Symptoms such as frustrated customers, product shortages, high inventory levels, or many unprofitable products, could be signs of an “unhealthy product portfolio”. Why should you care?—here is one of our client examples—“A technology client grew 2.4x by cutting products under development from 3,500 to 500, resulting in faster innovation, 63% increase in customer satisfaction, and 13% point increase in operating incomes”. The benefits resulting from discovering how healthy your product portfolio is, can often lead to transformative changes in your organization. Have we awoken your interest? please read on…
160118 pex wpc operating model imperative for oeDavid Toth
If you can't "out-structure" poor execution, can you "out-execute" bad structure? By structure, we mean operating model; the foundation for achieving strategic objectives and the framework in which you execute.
The purpose of the presentation is to discuss some management principles learnt in-class to assess Dollarama. In this presentation, functional departmentalization, SWOT Analysis and Social responsibility were looked into.
This was also a requirement for "Introduction to Management MGT-1000-Y. 2013
Research shows that the most successful companies use benchmarking as a key management process and information tool. As your company develops its annual strategic plans and budget, it helps to understand where you stand relative to your peers and competitors. Deviating from benchmarks isn’t good or bad: But it is important to know why and by how much you deviate in order to test and justify your decisions.
OPEXEngine Founder and CEO Lauren Kelley delivered this “Data-Driven Decision Making” presentation to an audience of over 100 CFOs at an invitation-only event hosted by General Catalyst Partners, a Boston-based venture firm on 19-Oct-2011.
Reviews the major alternatives open to business executives during mergers, and the associated post-merger returns for companies adopting each of the three main alternatives.
The research suggests that the choice of corporate brand strategy is value relevant, and may play an important role in facilitating a smooth process of post-merger integration.
150408 wpc business simplification overview v fDavid Toth
A perspective and guide to business simplification in the 21st century. Companies may need to consider first simplifying in order to grow and/or achieve their desired level of earnings.
Bigger is always better, right? Not always, especially in the world of business. The biggest challenge facing companies today is not how to continue growing, but how to grow profitably. We take a look at a few key things that separate those that simply grow and those that grow profitably.
WP&C's Complexity Workshop helps identify the most disruptive complexity drivers in your business, quantify the size of the opportunity, and chart a course to improved performance.
Mergers and acquisitions (M&A) are a critical enabler of strategy for many companies seeking to grow market share, acquire new technologies, or capture the advantages of scale. Unfortunately, M&A are a risky proposition, with more than half failing to create the value promised. Evidence suggests that the cost of complexity added by M&A frequently out paces any value created. This presentation delivered by Chris Seifert at the Chief Strategy Officer Conference, examines how a select few companies have been able to defy conventional wisdom, turning M&A into a strategic weapon, by systematically eliminating non-value added complexity in their day-to-day operations. - See more at: http://theinnovationenterprise.com/summits/chief-strategy-officer-summit-new-york-2014/schedule#sthash.0cmEWQTm.dpuf
Andrei Perumal, managing partner at Wilson Perumal and Company, presents "Simplify to Grow", how to build scale, speed and profitability in a complex world. This presentation was originally delivered during the 2014 CSO Conference in San Francisco, California.
Stepping into a role which requires business finance knowledge? Here is a short guide offering advice, tools, and expertise that you will need to equip yourself with to be successful. Check out our Diploma in Business Finance for more.
How Healthy is Your Company’s Product Portfolio?
Similar to your annual doctor’s check-up, your product portfolio needs a check-up too. Symptoms such as frustrated customers, product shortages, high inventory levels, or many unprofitable products, could be signs of an “unhealthy product portfolio”. Why should you care?—here is one of our client examples—“A technology client grew 2.4x by cutting products under development from 3,500 to 500, resulting in faster innovation, 63% increase in customer satisfaction, and 13% point increase in operating incomes”. The benefits resulting from discovering how healthy your product portfolio is, can often lead to transformative changes in your organization. Have we awoken your interest? please read on…
160118 pex wpc operating model imperative for oeDavid Toth
If you can't "out-structure" poor execution, can you "out-execute" bad structure? By structure, we mean operating model; the foundation for achieving strategic objectives and the framework in which you execute.
PEX Week 2016 - Operating Model Imperative for Operational ExcellenceScott Stallbaum
Making a step-change improvement in operations and achieving operational excellence requires looking at how your company does its work (what is done, who does it, where is it done), or the operating model.
Producitivity Challenges of Small and Medium EnterprisesVikas Sharma
These are slides that I presented at the 2014 SME Biztech Summit in Singapore. I talked about productivity-related challenges that are particular to small and medium sized businesses.
How to Break Through No Man's Land - The Stage Where Growing Companies Get Stucknewportboardgroup
Many companies enter a stage of growth where their business is too big to be small, and too small to be big. They’re running as fast as they can and yet the old way of running the business doesn’t seem to work anymore.
Catherine Cates discusses a proven set of actionable recommendations to pinpoint where you are in No Man's Land and how to break through it.
This slideshow details:
- How to recognize if you are in No Man's Land
- The 4 M's: categories where companies get stuck
- A tool to help your company move past No Man's Land
Growing your business can easily add complexity and thus erode the profits you expected from growth. The key is in understanding the nature of complexity and how to simplify your business to grow in a profitable way.
Business excellence is not about getting an assessment score by following a model, its about achieving tangible, intangible results of what matters, here is presenting BMGI's approach to Business Excellence. Reach out : prashantj@bmgindia.com for more details
Pitch Deck To Raise Funding From Mezzanine Debt PowerPoint Presentation SlidesSlideTeam
This complete presentation has PPT slides on wide range of topics highlighting the core areas of your business needs. It has professionally designed templates with relevant visuals and subject driven content. This presentation deck has total of fourty one slides. Get access to the customizable templates. Our designers have created editable templates for your convenience. You can edit the colour, text and font size as per your need. You can add or delete the content if required. You are just a click to away to have this ready-made presentation. Click the download button now. https://bit.ly/3aqxL7G
Similar to Wilsonperumalco firmintroduction-160304 (20)
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
FIA officials brutally tortured innocent and snatched 200 Bitcoins of worth 4...jamalseoexpert1978
Farman Ayaz Khattak and Ehtesham Matloob are government officials in CTW Counter terrorism wing Islamabad, in Federal Investigation Agency FIA Headquarters. CTW and FIA kidnapped crypto currency owner from Islamabad and snatched 200 Bitcoins those worth of 4 billion rupees in Pakistan currency. There is not Cryptocurrency Regulations in Pakistan & CTW is official dacoit and stealing digital assets from the innocent crypto holders and making fake cases of terrorism to keep them silent.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Event Report - SAP Sapphire 2024 Orlando - lots of innovation and old challengesHolger Mueller
Holger Mueller of Constellation Research shares his key takeaways from SAP's Sapphire confernece, held in Orlando, June 3rd till 5th 2024, in the Orange Convention Center.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
In the Adani-Hindenburg case, what is SEBI investigating.pptxAdani case
Adani SEBI investigation revealed that the latter had sought information from five foreign jurisdictions concerning the holdings of the firm’s foreign portfolio investors (FPIs) in relation to the alleged violations of the MPS Regulations. Nevertheless, the economic interest of the twelve FPIs based in tax haven jurisdictions still needs to be determined. The Adani Group firms classed these FPIs as public shareholders. According to Hindenburg, FPIs were used to get around regulatory standards.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
1. Strategy • Execution • Performance
Creating Value in a Complex World
Wilson Perumal & Company
Firm Introduction
March 2016
2. Wilson Perumal & Company, Inc. 2
Overview
Wilson Perumal & Company
1. Simplifying your Customer Offer (Markets, products, and pricing)
2. Optimizing your Operating Model (Assets, governance, partners, organization)
3. Strengthening your company’s Management Processes (Management System)
4. Realizing a Culture of Operational Discipline
5. Understanding and Managing Complexity (across all areas)
Key areas of
focus
Publications • Waging War on Complexity Costs, McGraw-Hill 2009
• Growth in the Age of Complexity, McGraw-Hill 2016
Offices • Headquartered in Dallas, TX
• UK subsidiary based in London
Clients
• Typically mid-large companies (>$500M in revenues), private equity firms and
select areas of the US government
• Across industry with significant experience in industrial sector manufacturing
(i.e., pumps, HVAC, packaging equipment, coatings, wire & cable, tools, etc.)
Point of View
Recognition • Best Small Strategy Firm to Work for, 2014, Consulting Magazine
• One of 12 to Watch (Seven Jewels edition), 2012, Consulting Magazine
Complexity is destroying many organization’s ability to create value. Lacking
organizational and operational capabilities to deliver on market value-add variety,
and weighed down by the cost of internal complexity, companies need different
tools, approaches, and strategies.
A strategy consulting firm helping clients create value in a complex world
3. Wilson Perumal & Company, Inc.
#Items #links
1 0
2 1
3 3
4 6
5 10
…
10 45
Complexity is exceeding the capabilities of many
organizations…
Complexity is the number
of “things” you have to
manage
The impact of complexity is higher cost and risk and a
reduced ability to grow. Complexity is the opposite of scale!
4. Wilson Perumal & Company, Inc.Source: Company Financial Statements; WP&C analysis 4
…and likely why a surprising number of S&P 500
companies are failing to achieve economies of scale
Economies of
scale
DIS-economies
of scale
S&P 500 companies with economies (or dis-economies) of scale
9 years financial data as of January 2015
n = 423
Almost half of S&P 500
companies are actually
becoming less efficient as
they grow
5. Wilson Perumal & Company, Inc. 5
But not surprising is that economies of scale leads to
significantly higher stock price appreciation
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
350.00%
400.00%
450.00%
Companies with greatest
economies of scale
Companies with least economies
of scale (dis-economies)
The top 20% of companies
have 9X higher stock price
appreciation
Top 20% Bottom 20%
Stock price appreciation of S&P 500 companies (sorted by most to least economies of scale)
9 years financial data as of January 2015
n = 423
Source: Company Financial Statements; Google Finance; WP&C analysis
6. Wilson Perumal & Company, Inc. 6
Failing to achieve economies of scale appears to be
due to an inability to control costs (not lack of growth)
• The bottom 20% of companies (those with the greatest DIS-economies of scale)
actually have the highest revenue growth
– And companies in the remaining tiers have fairly consistent revenue growth
7.4%
6.8%
6.1%
6.8%
9.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Top 20% Bottom 20%
Companies with greatest
economies of scale
Companies with least economies
of scale (dis-economies)
Revenue growth of S&P 500 companies (sorted by most to least economies of scale)
9 years financial data as of January 2015
n = 423
Source: Company Financial Statements; WP&C analysis
7. Wilson Perumal & Company, Inc.Source: Company Financial Statements; WP&C analysis 7
This lack of cost control manifests itself in one of three
ways—failing to control COGS, R&D, or SG&A
• COGS is almost always the single largest cost driver in
a business and failing to control COGS while revenue
is growing leads to dis-economies of scale 55% of the
time
SG&A 20.0%
R&D 25.0%
55.0%COGS
• Companies over-investing in R&D without seeing an
associated uplift in revenue or profits is the second
leading reason why companies fail to achieve
economies of scale
• 20% of the time, the issue lies with SG&A
– Seeking growth, companies invest in sales and
marketing but fail to see the uplift in revenue (or they
add too many brands, products, or geographies which
significantly hampers productivity)
– Or, companies add overhead, management, or
administrative costs without considering the cost impact
8. Wilson Perumal & Company, Inc. 8
In many cases, product proliferation drives such
complexity and is a good place to start simplifying
• Often the most profitable 20% to 30% of products generate more than
300% of the profits in a company, meaning…
• …the remaining 70% to 80% lose 200% of the profits
• Islands of profitability in a sea of costs!
Products that
create profit
Products that
“lose” profit
0% 25% 50% 75% 100%
100%
300%
% TotalProducts
0%
% Total
Profits
The “Whale Curve”
Source: Sievanen, Suomala, and Paranko, Activity-Based Costing and Product Profitability (Tampere, Finland:
Institute for Industrial Management, Tampere University of Technology)
9. Wilson Perumal & Company, Inc. 9
Our complexity-adjusted profitability approach allows
you to quickly see product performance differently…
Square Root Costing is a faster, more dynamic way to
understand and see the impact of complexity on cost
• Helps determine where the business has truly achieved
scalability and where complexity costs are eroding profits
• It answers the question: at what volume would Product A
achieve profitability, if at all?
While standard methodologies spread costs
evenly making all products look profitable…
…Square Root Costing reveals which products
are truly profitable and which are not
Square Root Costing in
Action
At MillerCoors we recently
determined the cost and
profitability of their 1,700
products, across all nine
breweries, and down to the
operating profit level
“This was a quick and painless
way to understand our true
product profitability, and it
challenges how we think
about our business. I am
extremely pleased with the
results.”
—Fernando Palacios
EVP, Chief Integrated Supply Chain Officer
MillerCoors LLC
Square Root Costing in
Action
10. Wilson Perumal & Company, Inc.
…and helps companies make the right decisions in
their portfolios to reduce cost AND enable growth
1. Understand how complexity impacts
your profitability
• Use complexity costing to determine where the
business has scalability and where complexity
costs are eroding profits
2. Balance incremental revenue vs.
incremental cost
10
• Incremental
revenue: revenue
that would be lost
if SKU was
removed
• Incremental cost:
cost that would be
released if SKU
was removed
3. Substitutability: the unsung hero of a
successful portfolio optimization
• Leverage in-depth customer research and internal
analysis to ID substitutes for high-volume products
(to unlock more cost w/o sacrificing revenue)
4. Don’t just “cut the tail”
• Don’t just “cut the tail”
• Consider incremental
revenue & cost, and
substitutability to
uncover real
opportunities to
optimize your portfolio
11. Wilson Perumal & Company, Inc. 11
McGraw-Hill, 2009 McGraw-Hill, 2016
• Complexity Costs
• Product, process &
organizational complexity
• Systemic issue: holistic
approach
• Reshaping cost structures
through concurrent actions
• Scale vs. Complexity
• The Sirens of Growth
• New mindsets, capabilities
• Achieving profitable growth by
understanding scale, and
keeping complexity at bay
“WP&C’s approach to complexity is the most
direct route to an efficient, profitable
enterprise.”
—Ed Lonergran, CEO, Diversey Inc.
We are the experts in understanding and tackling the
challenges associated with complexity
"At Samsung Electronics, a simple and
speedy decision-making procedure has
contributed to our success. Complexity is
one of the biggest impediments to
operational speed. The authors present a
practical approach for tackling it. This book
is inspiring.“
—Oh-Hyun Kwon, Vice-Chairman and CEO,
Samsung Electronics
“Regulators and government officials
should read this book and take notice.
Complexity dramatically increases costs and
risk of failure.”
--Andy Beal, Chairman and CEO, Beal Bank
“Separating good from bad complexity
costs is a critical task facing companies
today, and the authors provide a compelling
roadmap for solving the problem.”
—Mike McCallister, President and CEO,
Humana, Inc.
12. Wilson Perumal & Company, Inc. 12
When it comes understanding complexity and costing,
our unique approach is gaining a following
“This was a quick and painless way to understand our true profitability, and it challenges how we think
about our business. I am extremely pleased with the results.”—Fernando Palacios, COO, MillerCoors LLC
13. Wilson Perumal & Company, Inc. 13
Testimonials
“WP&C combines the level of talent and capability of
the name-brand strategy firms with the great working
relationship, partner engagement, and level of personal
commitment you can only get with a smaller firm.
WP&C is the best of both worlds.”
—Dave Hoogmoed, President, Land O’Lakes Purina Feed “This was a quick and painless way to understand our
true product profitability, and it challenges how we
think about our business. I am extremely pleased with
the results.”—Fernando Palacios, COO, MillerCoors LLC
“If you take all six times where we looked at this, over the
past ten years, and rolled them all up together, and
multiplied by ten, it would still not be as good as this
work.” —Bill McNabb, CEO, Vanguard Group, Inc.
“You are analytical and smart, but you also get
things done!”
—Chris Harwood, Portfolio Executive, Doughty Hanson &
Co.
“This work represents the best understanding of
the ammunitions logistics base I have seen…I for
one have been waiting for this for years.”
—Installation Commander
Crane Army Ammunition Activity (CAAA)
“I have been more than pleased with what you
have been able to accomplish in this time. Beyond
my expectations…Spectacular!”
– Peter Benton, COO, Worldwide Clinical Trials, Inc.
Over the last few years we have used many consulting
firms, including McKinsey and Bain, but we feel we
got the most value in this area from WP&C."
—Bert Davis, SVP Transformation,
Stanley Black & Decker, Inc.
“Fantastic piece of work! You’ve really shed a
lot of light on our business.”
—Rupert Pearce, CEO, Inmarsat plc
“The best work I have seen in Operations
Development. A case study for us as a business.”
–John Browett, CEO Dixons Retail
“You have got more done in the first 2 weeks than
90% of project teams I have seen”
– Bruce Roberson, Advisor to the board, Contech Engineered
Solutions (& former Senior Director, McKinsey)
“We have never been able to achieve these kinds
of results before with consultants.”
—Private Equity Executive, The Jordan Company
14. Wilson Perumal & Company, Inc.
14
Customer
Offer
• Market and customer
expansion proliferate the
portfolio confusing Sales and
Customers alike
• Products and pricing
practices drive
cannibalization and
discounting
• Customer service and
experience degrade as the
business becomes harder to
manage
We have built expertise around 4 key areas: where
value creation breaks down in the face of complexity
Operating
Model
• End-to-end value delivery
becomes ineffective (order
to cash, concept-to-launch,
etc.)
• Misaligned cost-to-serve
and value offering result in
missed revenue and/or
margin
• Processes, technology, and
organization no longer fit
or support the needs of the
business
Management
Systems
Culture for
Execution
Strategy Execution
How Value Creation breaks down:
Recapturing Value:
Right Offering Optimized Structure Effective Management Operational Discipline
X X X
• Portfolio Optimization
• Pricing Strategy
• Complexity Costing
• Multiple management
systems resulting in
duplicated and overlapping
processes
• Lack of clarity of ownership
for management processes
resulting in organizational
complexity and politics
• Unclear expectations
resulting in a lack of
accountability
• Command and control
culture that is unable to
anticipate risk and learn from
mistakes
• Lack of Operational Discipline
resulting in inconsistent
performance and variation
• High variation in norms and
behaviors resulting in silos
and making it difficult to
work across business units
• Rapid Assessment
• 7 Element Operational
Excellence Management
System
• Culture Assessment and
Alignment Process (CAAP
• 5 Pillars of Operational
Discipline
• Op Model Diagnostic
• Value Stream Optimization
• Operating Model Design
15. Wilson Perumal & Company, Inc. 15
Case: F500 manufacturer in low-growth, low-margin
market uses portfolio optimization to drive savings
Results: $8M in EBITDA improvement across eight manufacturing plans
Complexity adjusted costing showed 33% of
products were unprofitable
Client was shocked to learn that distribution was
larger driver of cost than manufacturing
Focusing on reducing excess movements
between plants…
…helped drive more local plant production and
drive significant savings
16. Wilson Perumal & Company, Inc. 16
Case: a successful construction materials company
knew it needed to simplify to maintain growth
Results: Expected $20M in net annual EBITDA benefit in year three
We evaluated customer value proposition &
selling effectiveness…
…to discover that with product growth, responsibilities
& accountability had become blurred
We evaluated product and channel performance
and came up with practical alternatives…
…to ultimately redefine channel strategy and
optimize the sales team structure
17. North America Europe
One Galleria Tower
13355 Noel Road, Suite 1100
Dallas, TX 75240
972-716-3930
Longcroft House
2/8 Victoria Avenue
London, EC2M 4NS
+44 (0)203 206 1496
www.wilsonperumal.com
dtoth@wilsonperumal.com
Contact Us: