Research from The Hackett Group indicates that the average Fortune 100 company could achieve cost reductions of approximately $120 million dollars annually by leveraging the global labor force alone. More compelling, is the fact that Hackett research also indicates that the ability to enhance operational excellence is a multiple of that figure. The graph below provides three examples areas where significant cost reductions and ultimately operational excellence can be achieved.
World-class EPM organizations deliver 2.4 times the equity market returns of industry-peer companies.
Source: The Hackett Group, 2008
Top performing organizations are able to free up $2.9 billion more in working capital than the typical Global 1000 organization.
A strong correlation of $462 million in additional EBITDA for those with top-performing talent management programs versus their industry peers.
More often than not, organizational complexity and misalignment are often the major barriers to performance optimization. While it may be obvious where improvements are needed, resistance to change and adherence to outmoded or overly complex processes make it impossible to effect real change and achieve operational excellence. However, it is possible to obtain the clarity of accountability and end-to-end perspective that are essential to optimize supply chain processes, core G&A and operational support processes. A key element of this is an effective talent management strategy.
Using a "proprietary" business benchmarking process and business best practice implementation capabilities, Hackett can measure the under spend or investment that is normally ascribed to business process improvement opportunities as well as the over spend that is usually assumed from any process benchmarking efforts. What makes Hackett's value proposition most compelling is that nearly always the over spend that exists within an organization is significantly higher than the level of investment required to achieve operational excellence.