Cost-out in times of distress.
Facing complex financial, commercial and operational challenges brings high scrutiny and pressure to organisations to act fast and make the hard decisions. Strategic repositioning may involve organisation cost-out as part of a broader transformation, or more focused turnaround activities in subsidiaries or divisions.
With a mindset to thrive, not just survive, we help clients to address issues and deliver material and sustained improvement.
How we can help you
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We identify an organisation's key drivers of financial performance informing decisions and improve financial performance. We review and implement changes to legacy cost structures, including functions and processes, to better align with organisational strategy and embed strong performance tracking frameworks.
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We implement a cost reduction program focused on tightening financial delegations and controls. We review processes, policies and procedures, establish clear and measurable KPIs and improve reporting to rapidly stabilise financial performance. We also develop detailed zero-based budgets and provide CFO services.
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Through improvement to procurement and supply chain operations, we help organisations reduce costs and embed a culture of cost control. We review contracts and contract management frameworks, refine financial delegations and authorisation limits and assess supply chain costs to address cost reduction opportunities.
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We undertake a full labour diagnostic, identifying the drivers of labour costs and current recruitment delegations and controls. We work with clients to develop a workforce framework that is considered, empathetic and aligned to operational strategy and financial objectives.
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We help clients clearly define the ‘future state' and plan workforce transition to accelerate performance beyond the cost reduction program. We design and implement operating models, organisational structure and workforce transition and communications strategies. Where required, we assume interim roles to stabilise leadership.
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We develop real estate portfolio strategies that enhance performance, reduce costs, maximise owned property value and minimise lease liabilities. We assess footprint requirements, financial liability and legal and commercial leverage. We produce asset, development and divestment strategies and, where required, exit negotiation and wind down plans.
Our experience
We bring an evidence-based approach to our work with a strong emphasis on action and results.
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Central Adelaide Local Health Network
Central Adelaide Local Health Network (CALHN) is South Australia's largest healthcare network with circa 13,000 staff, five hospitals and a $1.8 billion annual budget. CAHLN was an organisation in financial and cultural distress, forecasting a $274 million FY19 budget overrun.
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Slater and Gordon
Slater and Gordon is an iconic Victoria-based law firm that narrowly avoided insolvency via a recapitalisation backed by a US hedge fund. In Australia, Slater and Gordon reported a $67 million EBIT loss in FY17 and had 1,100 staff operating in 51 locations.
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Network Ten
Network 10 is an Australian commercial television network operating across multiple traditional media platforms with circa 1,000 staff. Following half year losses of $232 million reported in 2017, Network 10 went into voluntary administration and was acquired by US television giant CBS (now ViacomCBS).
ln a relatively short period of time, KordaMentha submitted an impressive, insightful and detailed written review, identifying key opportunities, risks and challenges facing the business.
