Skip to content

Declining profitability

Duplicated work, complexity and friction tie up resources. Too little is left for creating value and developing the business.

Three people working at pinboards in front of a glass façade
  • Siemens
  • Porsche
  • Bayer
  • BASF
  • Henkel
  • Sony
  • Metro Group
  • McDonald’s
  • E.ON
  • Dräger
  • Sennheiser
  • Schüco
  • WIKA
  • Currenta

Does this sound familiar?

Complexity, duplicated work, inefficiency and friction tie up resources that are then missing for value creation, investment and building the future.

Common questions from practice

  • Where do recurring coordination loops, waiting times or duplicated work arise?

  • Which causes lie in processes, interfaces or decision paths?

  • Which changes free up room for strategically important work?

Where is the organisation losing performance – and which structural changes can address it?

Organisational optimisation means working on the potential for performance and value creation. It starts with specific processes and the conditions that hold them back. Observations from the departments involved help to understand causes and effects together.

Go to field of action OptimisationAlso relevant: field of action StrategyAlso relevant: field of action Organisation
Optimisation in transformation
Portrait of Robert A. Sedlák
„Improving profitability does not mean delivering as much as possible. It means meeting customer expectations with a commercially sensible use of resources.“

Robert A. Sedlák

Founder and CEO transformis Consulting SE | Guest Professor ECNU Shanghai | Certified business mediator (German Mediation Act) | Head of the family business competence team

Lasting impact in your company

Look at value creation and organisation together

Our services include value stream management and organisational diagnostics. They can be the right place to start when resources are tied up at interfaces or by unclear responsibilities. Which measures make sense, and how their impact will be judged, is agreed based on your situation.

Trace the value stream together

The analysis follows material and information flows from demand to delivery. Waiting times, queries and duplicated work become visible at specific handovers. The core team develops a target picture and assesses possible improvements against the performance it wants to achieve.

Track improvement against clear criteria

An engagement needs a baseline and agreed checkpoints. Progress is reviewed with the people involved. Activities completed, changed processes and financial results are kept separate so that necessary adjustments remain visible.

Look at costs and customer value together

Value stream and customer segmentation are two sides of the same question. The value stream shows where waiting times, unnecessary processing or missing information tie up resources. Customer segmentation shows what value different target groups expect and where an offer delivers more than customers actually need. Leadership and the departments affected can bring these findings together: which processes can be simplified without damaging the chosen value proposition? Which services need different positioning or pricing?

An engagement needs a reliable baseline and agreed checkpoints for what follows. No specific savings rate or margin increase can be promised in advance. The answer comes from the data and decisions of the individual company.

Friction becomes freedom. Complexity becomes the ability to act. Optimisation becomes room for the future.

Explore the topic further

Explore examples of our work and ideas for your own transformation.

Frequently asked questions

Should profitability improvement start with costs or customers?

Both perspectives are tied to your specific situation. The value stream shows where waiting times, unnecessary processing or missing information tie up resources. Customer segmentation shows what value different target groups expect and where an offer delivers more than customers need. For transformis, optimisation is not a savings programme but a strategic contribution to future viability.

Which kinds of friction can be examined?

For example waiting times, queries, missing information and duplicated work in the value stream. The analysis follows material and information flows from demand to delivery, and the friction becomes visible at specific handovers. Observations from the departments involved help to understand causes and effects together. The core team develops a target picture and assesses possible improvements against the performance it wants to achieve.

Why does the value proposition matter?

A saving must not quietly erode the value delivered to priority customer segments. Management and the departments affected therefore look at costs and customer value together: which processes can be simplified without damaging the chosen value proposition? Which services need different positioning or pricing? Distinguishing between good and bad costs improves how resources are used.

Is a profit improvement guaranteed?

None across the board. No specific savings rate or margin increase can be promised in advance. An engagement needs a reliable baseline and agreed checkpoints, and progress is reviewed with the people involved. Activities completed, changed processes and financial results are kept separate so that necessary adjustments remain visible.

How does this differ from a cost-cutting programme?

Short-term cost-cutting falls short if the causes of weak profitability remain in structures, processes and decision routines. transformis therefore separates the management of operating costs from strategic spending on the future. This creates financial headroom without putting necessary investment at risk through across-the-board cuts. Value stream management and organisational diagnostics show where to start.

Prefer to talk directly?

Or simply get in touch. We are happy to talk everything through in person – without obligation, in confidence and as equals.

Jan-Niclas Bockard

Jan-Niclas Bockard

Director | Chief Operating Officer (COO) and Head of corporate strategy competence team

Your initial call

Let’s talk about your situation and what you want to develop in your organisation.

  • Your situation
  • What brings you to us
  • Possible next steps
Book an initial call