Enabling value creation to sustain future growth

Organizations that survived the worst of the pandemic are braced for yet more change, with 86% of CEOs believing that a recession will happen over the next 12 months, and 73% saying it will upend anticipated growth over the next three years.

Soaring inflation and interest rates, ongoing supply chain issues, global unrest and a tight labour market are creating a perfect storm of conditions for an economic slowdown. Leaders are under pressure to reduce costs and improve their cash position. But if not done well, this can come at a significant cost to the business. Hence, it’s essential to define a strategic approach to value creation in order to confidently achieve measurable improvements to your revenue, operating margins, cost structures and working capital positions.

Value creation is about uncovering sustainable efficiencies in how you operate and how work gets done to weather external forces beyond your control. It’s about becoming responsive and agile, with business, technology, finance and operations working together in harmony. Our Seven levers to business value creation guide outlines a number of possible value creation levers and actions and can help your organization start thinking proactively about its approach and build resilience.

• The key factors driving value creation: We look at how the current economic climate is impacting your workforce and overall business performance. What will your new reality look like once the economy bounces back? How can you support top-line stability and continued bottom-line growth?
• Value creation levers and potential actions: KPMG's seven value creation levers can help you uncover sustainable efficiencies in how you operate and how work gets done. What is the desired future state of the business? And how can it be funded?
• The building blocks of value creation: Value creation requires deep alignment of business challenges and technology opportunities, delivered at pace with cross-competency, market-speed operating models. How can you adopt automation and other technology tools to help preserve and realize value?
• Reflection questions to help weather a downturn: In response to an economic slowdown, proactive organizations need to rebalance their focus from sales and growth to margin improvement and cash preservation strategies. How are you looking to create and preserve value, such as working capital strategies that enhance liquidity, improve performance and reduce costs?
• A three-phase roadmap to help boost profitability and EBITDA: Quantify the opportunity for improvements based on the ‘art of the possible’ and prioritizing initiatives for implementation to capture the value.

• Completing a rapid performance review to identify opportunities and build a roadmap
• Analyzing data to build an accurate picture of operational, financial and tax positions, as well as cash flow
• Unlocking value through a range of performance transformation offerings
• Achieving measurable improvements to revenue, operating margins, cost structures and working capital positions
• Reducing complexity to enable faster decision making and improve responsiveness to changing market conditions
• Building capabilities for value creation that help maintain and improve margins, and sustain improvements over time
  

Contact us to discuss your unique needs and objectives around creating and preserving business value. We can help.