Rethink your contribution margin model for better performance management

Background

A benchmark player in the field of energy management, our customer has developed a very strong global culture, with over 135,000 employees worldwide. Given its highly integrated operating model, performance assessment is based on a complex mechanism of margin transfer between plants, logistics centers and front offices.

Challenge

Refine the model for calculating contribution margins, so as to improve performance analysis at all levels of the organization and reduce the residual portion of observed discrepancies.

Approach

We supported the customer's approach with a team of consultants working in close collaboration with management control and the IT department: - Definition of the new calculation model in collaboration with the various parties involved (IT Department, Group Performance, Supply Chain, etc.): analysis of inter-company purchasing and sales flows, calculation of exchange rate impacts, implementation of "golden rules" for standard cost calculations, etc. - Replacement of existing technology to reinforce automation and improve computing power - Implementation of a "Dry-Run" allowing operational staff to validate new contribution figures - Change management: support for operational teams in understanding their new figures, training modules (support and e-learning), newsletters, animation of the user community in all Group countries. - Implementation of model governance between business and IT teams

Key results

Benefits

An increasingly sophisticated performance measurement model, in line with the Group's challenges and ambitions.

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