Typically, so-called “profit improvement teams” (PIT) are deployed within the scope of turnaround projects in which substantial cost savings must be realised within a very short time for the purpose of stabilising a company’s financial result. Against this background, our profit improvement teams bring together individual experts with many years of operational experience and comprehensive restructuring know-how. We draw on our own force of consulting specialists and work closely with a large network of external experts to enable us to do this.
When used in the context of a project situation like the one described above, the PIT usually follows a three-stage project approach:
Figure 1: Three-stage project approach for the use of a PIT
- 1) INITIAL SCAN: In the first stage, transparency is first established regarding the current situation – that is, the reasons for the existing crisis situation are clarified. These findings then serve as the basis for a systematic analysis of cost reduction potential.
- 2) DERIVATION OF MEASURES: In the second stage, the focus is on the development of specific cost-cutting measures. These are then prioritised according to their potential savings and implementation speed and transferred to an implementation roadmap.
- 3) TARGETED IMPLEMENTATION: In the third and final stage, any identified cost-cutting measures are detailed, approved and systematically implemented. A consistent controlling procedure is also put in place.
Five central success factors have emerged on the basis of numerous projects carried out across various industries:
- An experienced project team for cost reduction programmes: FOSTEC & Company has access to specialist teams with extensive experience in cost-cutting programmes, since this is the only way to achieve the necessary savings in the typically very short period for action
- Thorough implementation: Short, but systematic analysis phase with focus on the formulation of measures to be implemented
- Intensive project controlling: Constant monitoring of project progress and results in comparison to business case based on planned cost savings potential
- Holistic concept: Strategic superstructure ensures the consistency of all operational and short-term levers with long-term goals
- Cooperation between clients and consultants: Constant, constructive and quality collaboration between internal and external teams – that is, involvement of the organisation in question and joint development of solutions
FOSTEC & Company will be happy to support you with your turnaround by providing a high-performing profit improvement team. Through our consulting activities and our network, we have a good sense for job requirements and profiles in the areas of e-commerce and digitalisation.
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Markus Fost, MBA, is an expert in e-commerce, online business models and digital transformation, with broad experience in the fields of strategy, organisation, corporate finance and operational restructuring.Learn more