The company had recently experienced significant growth due to a private equity sponsored roll-up of smaller companies. To better understand how corporate functions were meeting the needs of the growing business, and to prepare for future growth, BRG professionals implemented a zero-based budget to align functional value drivers to SG&A spend for the finance and IT organizations.
The team evaluated functional performance to understand how the operating model delivered corporate services, and linked work to the cost elements of the organization. The team developed a budget that justified spend against the desired performance, including identifying the desired organization structure, role and responsibility alignment, and justification for discretionary spend.
The result was a tactical roadmap to achieve modest adjustments and improved effectiveness and efficiency for both functions. In one case, the team identified 7% EBITDA impact; in the other, the team validated the original budget but reformulated the spend portfolio to improve performance.