What’s the value of continuous performance improvement?
Helping to balance cost reduction and growth improvement
Market disruptions, competitive dynamics, and economic challenges are creating tremendous uncertainty for executives. Leaders cannot control or avoid the disruptions, but they can adapt and react to change by continually improving performance. In fact, companies that build this muscle outperform those that fail to address performance improvement opportunities.
While there is no single method for driving continuous performance improvement (CPI) amid disruption, leaders should apply a wide lens and a balanced approach. What’s likely to optimize results isn’t a sole focus on costs or growth—it’s balancing both goals.
Traditional approaches deliver limited value
Approach | Timeline | Scope | Typical results1 |
Targeted functional to topical cost takeout | Fast | Narrow | 2-3% EBITDA |
Continuous improvement | At pace | Narrow | 1-2% EBITDA |
Deliberate reinvention | At pace | Enterprise-wide | Variable EBITDA |
1Source: lorem ipsum
Continuous performance improvement goes beyond cost takeout
Approach | Timeline | Scope | Typical results |
Full-scale exercise that fundamentally addresses all areas of the business | Fast (delivers in-year impact) | Enterprise-wide | Up to 30% (or more) EBITDA as a percentage of revenue |
1Source: lorem ipsum
Two phases of continuous performance improvement
Build insights to help synthesize, prioritize, and quantify opportunities so you can validate and build a plan.
Begin activating your plan and delivering quick wins to build momentum and generate funding for more transformative changes. Continuously track and manage the value captured. Ensure transparency by communicating about program costs and the value realized.
Dive into our thinking:
The ROI from continually improving performance
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KPMG. Make the difference
As a trusted collaborator, we work closely with clients throughout the entire continuous process improvement journey. Tapping into our industry knowledge and experience, we take an integrated, cross-functional approach to help effectively optimize performance, digitize processes, and drive growth.
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