One of Chile's main players in the water utilities sector needed to estimate its maximum efficiency potential and promote a Zero-Based Budgeting (ZBB) effort to ensure that the efficiencies found would be reflected in the budget year and even generate additional savings.
At SummaPartners, we collaborated closely with the client's team to identify and validate efficiency initiatives and develop detailed capture plans. Additionally, we designed and implemented a new ZBB budgeting process, which was established in the company's policies and governance.
Throughout the project, we addressed opportunities in several key areas:
We identified opportunities for efficiency within spending packages.
We prioritized opportunities according to impact and capture feasibility, generating four implementation waves and quick wins.
We developed business cases and committed the organization to promoting detailed roadmaps.
We designed and implemented a zero-based budgeting (ZBB) process.
We structured a transformation office and a committee to monitor the capture.
Subsequently, we accompanied the capture of these opportunities, designing and leading the transformation office, and actively supporting the organization's mobilization through a change management process.
After four months of support, our client managed to incorporate and progress in capturing 14% of the company's total expenses, representing a 4.5 percentage points increase in EBITDA. This achievement not only reflected efficiencies in the fiscal year but also generated additional savings, consolidating the company's operational transformation.
If your company is evaluating working on an efficiency and productivity strategy with a view to reaching its maximum potential, contact us.