CASES - Deliver P&L impact

OPEX from 32% to 27%

A global furnishing retailer needed to lower operating expenditure without weakening its ability to lower prices, grow volume and serve customers better.

ScopeGlobal vertical retailer
ResultOPEX from 32% to 27%
SupportThree-year programme
What we did
01 · Design the system

Led a three-to-four-month analysis and programme design around six connected game changers, covering supplier relationships, product and store design, support functions, network learning and the operating model.

02 · Connect cost to purpose

Supported a company-wide launch. Early rational messaging failed to engage people, so the programme was connected to the purpose of creating a better everyday life and the price-volume-price cycle.

03 · Enable ownership

Avoided a large programme office. Teams rewrote and improved initiatives in their own terms, while a small central team focused on objectives, urgency, resources and realistic work plans.

Outcome
  • Operating expenditure reduced from 32% to 27%.
  • A programme designed to prevent costs removed in one area from reappearing elsewhere.
  • Teams owned and improved the initiatives rather than complying with a centrally imposed plan.
  • Management routines that sustained the new level of cost discipline.
Structural cost improvement depends on connected choices across the value chain and the willingness to let the organisation own the answer.
What next

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