Success story | Margin recovery program

Margin recovery program

CHALLENGES

Our client, an IT product and services company was facing a deterioration of its margins without being able to identify the root causes.

CYLAD was mandated to define a margin recovery plan, to support its implementation, and track the impact of the actions taken on the margin.

SOLUTIONS

CYLAD’s approach relied on three steps:

• Conduct financial performance assessment to understand current margin shortfalls, rootcauses and set up the baseline.
• Define structural and operational levers to improve margin, such as reviewing make or buy strategy, designing Zero Based Organization, reducing the cost of non-quality. It enabled not only to restore the margin in the short term but also to sustain it in the long term.
• Implement a margin improvement tracking system. The goal was to monitor both the implementation of levers, their impact on operational KPIs (e.g., attrition rate, %cogs, schedule adherence) and on business performance.

KEY DELIVERABLES

• Margin recovery plan
• Performance tracking system

CUSTOMER BENEFITS

• +5% to 8% margin improvement secured
• 15 levers studied, quantified and implemented

Download PDF