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The end of the ivory tower

July 22, 2021

4-MINUTE READ

In brief

A time for fresh thinking and radical change

1

How do we shape the right kind of customer experience for today?

2

What’s the leanest feasible local market setup that can deliver on that promise?

3

What kind of support is then needed from the central organization?

There’s a lot at stake here. According to our research and experiences, a typical $100 billion OEM can capture between 15% to 25% cost savings in personnel expenses with significant impact on the EBIT-margin.

91%

of executives believe that CEOs view shared services as a critical success factor for reducing complexity.

89%

of executives believe that shared can be the foundation for a fundamental redesign of the company.

35%

of 70 automotive CFOs mentioned undertaking widespread rapid cost reduction as a top priority in responding to the 2020 crisis.

37%

highlighted ensuring liquidity and maintaining cash flow as their highest priority.

Create a full view for baseline transparency

A consistent 360-degree view of local market organizations as they are today is an essential prerequisite of a zero-basing exercise.

Instill leadership and a transformation team

Ideally, an OEM will have a central transformation team of central and local leaders to coordinate, support, monitor and measure the transformation.

Balance investment versus savings

A well-designed transformation to a zero-based market organization can be a self-funding machine across all functions.

Pace for greater business continuity

OEMs should avoid the temptation to run too many transformation tasks at once or in parallel, and risk overburdening the organization.

Have clear communication and a unified culture

OEMs should infuse the transformation deeply into the corporate DNA, conveying a clear case for change and creating a “one team” mindset.

The path to a new possible

Meet the team

Axel Schmidt

Senior Managing Director – Global Industry Sector Lead Automotive

Christian Kleikamp

Managing Director – Global Automotive Strategy Lead

Teodoro Lio

Senior Managing Director – Consumer and Manufacturing Industries

Brian Irwin

Managing Director – North America Automotive Lead
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