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
