A world-leading software vendor was experiencing double-digit revenue growth but due to inorganic growth, its operating expense (OPEX) was impacting its earnings before interest, taxes, depreciation, and amortization (EBITDA). The software vendor contacted Eraneos to help it to re-introduce good performance and slow down OPEX cost growth while continuing its growth strategy. With these goals in mind, we got to work.
First off, we created 30 key actions based on performance management, business rationale, operations, and process and governance together with the company’s executive board. Next, we conducted an analysis of the company’s cost structure and its KPI targets on OPEX reduction for sales regions, services, and group functions. The last step was to establish and lead a company-wide performance assessment of around 7,000 internal employees and external contractors. Here, we introduced a new hiring rationale,
As a result of our approach, we identified and tracked measurements of low performance within the company to around 10 percent. We also reported weekly to the executive board with estimated potential savings and actions on low performance, and how this resulted in a lower double-digit million-dollar OPEX reduction.