{
  "docId": "019dd923-5ca1-7489-b634-df215e4f0bc1",
  "docSlug": "b89c4b2a8f5b0c45",
  "documentTitle": "Transformation Ebook",
  "authorId": "BCG",
  "authorName": "BCG",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "strategy_consulting",
  "sourceTypeLabel": "Strategy consulting",
  "presentationDate": null,
  "orientation": "landscape",
  "aspectRatio": 2.5,
  "pageNumber": 32,
  "pageCount": 167,
  "prevPage": 31,
  "nextPage": 33,
  "slideType": "case_study",
  "function": "illustrate_case",
  "density": "dense",
  "nDataPoints": 5,
  "notes": "The slide appears to be a continuation from a previous page, starting mid-sentence.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5ca1-7489-b634-df215e4f0bc1/32",
  "deckHref": "/decks/019dd923-5ca1-7489-b634-df215e4f0bc1",
  "deckJsonHref": "/decks/019dd923-5ca1-7489-b634-df215e4f0bc1.json",
  "deckAnchorHref": "/decks/019dd923-5ca1-7489-b634-df215e4f0bc1#slide-32",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Targeted measures to cut costs are an essential component of a transformation, yielding reductions of 10% to 25% in the cost base.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd951-acbb-7389-93ba-2829dae8d948",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "Capital Employed: $650 million",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd951-acbb-7389-93ba-2c7ef0897ed3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.78,
        "x": 0.11,
        "y": 0.09
      },
      "kind": "paragraph",
      "text": "quarter alone and a $270 million increase in available cash after six months. Moreover, a deeper analysis of fixed assets can also yield dramatic improvements in capital efficiency. In addition to asset reduction options—such as an outright sale or a defunding of future capital outlays—best-in-class companies manage both the need for assets and the way that assets are utilized. Asset needs can be lowered by reducing the complexity in both the product portfolio and the customer base. A complex portfolio of products often requires broad manufacturing assets, along with ramp-ups, ramp-downs, and changeovers. Streamlining the portfolio of products or customer accounts and rethinking outsourcing decisions can quickly improve productivity and allow for a reduction of assets.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "41397ed0-5be6-4989-8754-b86b0d3744e3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.78,
        "x": 0.11,
        "y": 0.75
      },
      "kind": "paragraph",
      "text": "Targeted measures to cut costs are an essential component of a transformation, yielding reductions of 10% to 25% in the cost base. Short-term measures such as improving procurement, shuttering facilities, and reducing personnel and overhead costs can be very effective—and sometimes mission critical. Companies can also capture quick wins through more profound cost reduction activities, including changing the supply chain, implementing lean manufacturing, and improving operational processes. The first cost reduction tool is better management of the cost of goods sold (COGS) and procurement; improved oversight of these areas can",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b2c04937-7068-4082-a790-bd8a306c1562",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.78,
        "x": 0.11,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "Take the example of a large industrial-engineering company that was struggling to reach its ambitious targets for return on capital employed (ROCE) and needed to reduce the $6 billion of capital employed in operations. A team thoroughly analyzed the amount of capital tied up in each of the value chain steps across all three of the company’s business divisions. The company also conducted a strategic review of each plant and activity from a ROCE point of view. As a result, it developed a plan to divest select parts of operations by either optimizing remaining assets or outsourcing activities to third-party operators. After one year, the company had reduced capital employed by $650 million—including $200 million in the first three months—with a minimal impact on profitability.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "faf4fece-7430-4489-a47b-e8cda23f8f63",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.15,
        "x": 0.11,
        "y": 0.71
      },
      "kind": "title",
      "text": "Cost Reduction",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3c99531f-af04-4871-acd7-7fd10233016b",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [
    {
      "metricRaw": "Capital Employed",
      "numberRaw": "$650 million",
      "numberKind": "money",
      "actionTitle": null,
      "calloutText": "Targeted measures to cut costs are an essential component of a transformation, yielding reductions of 10% to 25% in the cost base.",
      "numberScale": "m",
      "numberValue": 650,
      "metricFamily": "other",
      "numberCurrency": "$"
    }
  ],
  "tools": [
    {
      "name": "Concrete Language",
      "slug": "concrete-language",
      "agent": "Storyteller",
      "layer": "slide",
      "matchId": "019dd95a-1575-7358-9707-7278c00ab1a0",
      "evidence": "$650M cost-base targets cited; 10-25% reductions.",
      "confidence": 80
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 67,
      "from": 23,
      "beatId": "019dd95a-0702-74a3-87e2-a351b5a5af36",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Solution & Approach",
      "beatSlug": "consultants-gambit-solution-approach",
      "evidence": "Part I introduces holistic 3-pillar framework chapter by chapter.",
      "position": 3,
      "confidence": 85,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    },
    {
      "to": 67,
      "from": 9,
      "beatId": "019dd95a-0702-74a3-87e2-ad6495641025",
      "arcName": "The Triple Take",
      "arcSlug": "triple-take",
      "beatName": "The Facts (What)",
      "beatSlug": "triple-take-the-facts-what",
      "evidence": "Context and 3-pillar framework definition.",
      "position": 1,
      "confidence": 65,
      "parentBeatName": "Setup",
      "parentBeatSlug": "setup"
    }
  ],
  "loops": [
    {
      "to": 33,
      "from": 25,
      "name": "Quick Win Big Bet",
      "slug": "47-quick-win-big-bet",
      "bestFor": "Transformation planning, 100-day plans, resource allocation",
      "matchId": "019dd95a-088c-724c-b30e-c4686f0d35fc",
      "evidence": "Four levers + cases delivering 10-25% cost cuts and bps EBIT improvement in months.",
      "position": 4,
      "objective": "Sequence quick fund-the-journey wins to fuel transformation",
      "structure": "The Full List -> Quick Wins (Low effort, High impact) -> Big Bets (High effort, High impact) -> Sequenced Roadmap",
      "confidence": 80,
      "description": "Separate initiatives into immediate wins and longer-term strategic bets"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}