2nd Operations-Efficiency-Radar - The Top Levers ... - Roland Berger

2 nd OPERATIONS-EFFICIENCY-RADAR 

The top-levers 2011 – A decision support for the CFO agenda 

Study results – Summary 

Munich/Stuttgart, September 2010 

2nd_Operations-Efficiency-Radar_2011_fvs_E.pptx

CONTENTS 

A. Management Summary 3 

B. Background and objective 7 

C. The CFO-Agenda 2011 12 

D. Incorporation of the Operations-Efficiency-Radar in 

the planning process 21 

E. Your contacts 24 

A joint study by the International Controller Association (ICV) and Roland Berger 

This document was created for our client. The client may use it for its own internal purposes. Please note the disclaimer at the end of this document. 

© 2010 Roland Berger Strategy Consultants GmbH 

2nd_Operations-Efficiency-Radar_2011_fvs_E.pptx 

2

A. 

Management Summary 


3

The German economy has achieved the turnaround in 2010 – 

The CFO-Agenda 2011 consistently continues the chosen path 

Overview 

> After the most serious post-war economic downturn in 2009 the German economy has achieved the 

turnaround in 2010 

> Many companies successfully switched from a restructuring to a growth mode 

> The economic upturn seems stable and will continue in 2011 

> However, the volatility of the economic development is increasing – Selective setbacks might be 

possible 

> The CFO-Agenda 2011 confirms the increasing economic confidence by addressing future- and 

growth-oriented t topics – Nevertheless, thl efficiency ffii improvement measures do not vanish ih from the 

agenda 

> In doing so, the CFO-Agenda 2011 consistently continues the chosen path – Focus on levers to 

enforce growth while simultaneously increasing efficiency 

Source: Roland Berger 


4

The CFO-Agenda 2011 focuses on levers to enforce growth and 

increase efficiency 

Review 2010 

> The CFO-Agenda 2010 has successfully been implemented 

> The main activities planned in 2009 for 2010 haven been conducted 

> The CFO forecast for 2010 has been confirmed 

Outlook 2011 

> In 2011, the CFO-Agenda also focuses on Product Portfolio, Production and Working Capital – 

Purchasing and Logistics gain relevance displacing Innovation & Development 

> At the same time companies intensify their overall level of activities planned along the value chain 

by Ø 7%-points – Companies do not take a breath, they intensify planned activities in order to make 

up lost ground and prepare for possible setbacks 

> Especially in the focus areas of the CFO-Agenda, planned activities iti are increasing i – Almost 70% of 

the companies are planning activities in the areas Product Portfolio and Production 

> 7 out of the Top-10 levers come from two areas: Product Portfolio and Production – Thereby, 

growth and efficiency are jointly pushed 



5

Special evaluation: Strategy – Companies focus on organic growth 

and continuous improvement 

Special evaluation: Strategy 2011 

> With regard to the radical switch from restructuring to growth mode in 2010 a special evaluation 

"Strategy" has been incorporated in the Operations-Efficiency-Radar 2011 

> The aim was to determine the priorities for strategic topics and their influence on the CFO-Agenda 

> The results show that growth is the main topic for 2011 

– 78% of the respondent companies aim for organic growth 

– Also almost 50% of the companies aim for inorganic growth 

> In parallel 67% of the companies also plan to drive continuous improvement measures in order to 

further increase efficiency 



6

B. 

Background and objective 


7

Turnaround accomplished – Now the levers for 2011 have to be 

identified to speed up growth and increase efficiency 

Motivation & key question 

> Turnaround accomplished 

> Restructuring measures mostly completed 

> Economic upturn seems stable 

> Increasing volatility – 

Selective setbacks might be possible 

> Challenges for 2011: 

– Generate and steer growth 

– Optimize costs 

– Increase flexibility 

THE KEY QUESTION 

What are the top efficiency 

levers for 2011 to … 

> Participate in the upturn 

> Secure long term sustainable 

growth 

> Further optimize costs 

> Be able to react flexibly in 

case of setbacks 



8

The Operations-Efficiency-Radar outlines the top efficiency levers 

2011 – A decision-making support for the CFO-Agenda 

Objective and benefits 

THE GOAL 

To identify the top 

efficiency levers 

for manufacturing 

companies in 2011 

Operations-Efficiency-Radar 

THE BENEFITS 

A decision-making 

support for CFOs 

when planning for 

2011, 

as well as a basis for 

the CFO's 

discussions with 

other functions 

Intended perspective: the "neutral" CFO's view on his/her own company ("inside-in") 



9

The Operations-Efficiency-Radar focuses on CFOs/ commercial 

directors – Share of participants with sales > EUR 500 m doubled 

Focus of the survey and responses from companies 2011 

Target 

companies 

Target group 

> Manufacturing companies 

> "SMEs" up to approx. EUR 5 billion in sales 

> CFOs/commercial directors 

> CEOs/managing directors 

FUNCTION OF THE PARTICIPANTS 

Others 

(2% in 2010) 

3% 

72% 

CFOs/ 

Commercial 

directors 

(78% in 2010) 

CEOs/ 

25% 

Approach > Quick survey by e-mail and questionnaire 

managing directors 

> Participants marked boxes on specific levers 

(20% in 2010) 

(no open-ended questions) 

> Levers were based on the experience of the CORPORATE SIZE OF THE PARTICIPANTS – 

International Controller Association and Roland 

SALES [EUR m] 

Berger 

2010 

Trend 

Timeline > End of August until mid-September 2010 

>500-5,000 15% 

36% 

Response rate 

> Approx. 900 companies surveyed, 

response rate >12% 

(10% in 2010) 

Trend 

50-500 

53% 

Industrieperspektive 

Unternehmensperspektive - Ist 

Unternehmensperspektive - 2010 

Wie schätzen Sie die Wichtigkeit des 

Wie schätzen Sie den Nutzungsgrad 

Planen Sie spezifische Aktivitäten für 

Hebels in Ihrer Industrie ein? 

des Hebels im Unternehmen heute ein? 

eine verbesserte Nutzung des Hebels in 

2011? 

Sehr 

Sehr 

Sehr 

Sehr 

Sicher 

Sehr 

gering 

hoch 

gering 

hoch 

nicht 

sicher 

# Themenbereich # Makrohebel/-ansatz 1 2 3 4 5 k.A. 1 2 3 4 5 k.A. 1 2 3 4 5 k.A. 

1 Produktportfolio 

etc.) 

1 Bereinigung des Produkt-/Serviceportfolios (negative Marge, Komplexitätstreiber, 

2 Kundenorientierte Optimierung der Produkt-/Servicemerkmale (Funktionsentfall/- 

aufnahme) 

3 Funktionsübergreifende Produkt-/Servicekostensenkung (Betrachtung aller Kosten 

der Wertschöpfungskette) 

4 Erarbeitung eines zukunftsfähigen Produkt-/Serviceportfolios 

2 Innovation und 1 Optimierung Produktarchitektur und Einsatz Plattform-/Modulkonzepte 

Entwicklung 

2 Optimierung Wertschöpfungstiefe in der Entwicklung (In-/Outsourcing, Joint 

Ventures, etc.) 

3 Optimierung Produktinnovations-/entwicklungsprozess (kundenorientiert, kurze Timeto-market, 

etc.) 

4 Funktionsübergreifende Kostenoptimierung im Entwicklungsprozess (frühzeitige 

Einbindung Einkauf, Anwendung verfügbarer Kostensenkungshebel, etc.) 

5 Bereinigung Projektportfolio 

6 Optimierung Entwicklungsnetzwerk und -steuerung (Marktnähe, Kosten, 

Kennzahlen, etc.) 

3 Einkauf 1 Anwendung kaufmännischer Einkaufshebel (Preisvergleich, Bündelung, etc.) 

2 Anwendung technischer Einkaufshebel (Wertanalyse, Materialsubstitution, etc.) 

3 Anwendung prozessualer Einkaufshebel (e-procurement, online Kataloge, etc.) 

4 Erarbeitung Warengruppenstrategien (Berücksichtigung Kosten, Qualität, 

Technologie, Verfügbarkeit) 

5 Verbesserung Lieferantensteuerung (Risikomanagement, prozessuale Anbindung, 

etc.) 

6 Optimierung Aufbau- und Ablauforganisation, Einkaufssteuerung und Systeme 

(Zentralisierungsgrad, Incentivierung, etc.) 

4 Produktion 1 Optimierung Wertschöpfungstiefe in der Produktion (Kernkompetenzen, Make-orbuy) 

2 Optimierung des globalen Produktionsnetzwerkes (Produkte/Standorte) 

3 Effizienzsteigerung in der Produktion (kontinuierliche Verbesserung, Kaizen, Six 

Sigma, etc.) 

4 Optimierung Planung und Steuerung 

5 Optimierung der indirekten Kosten (Automatisierung, Zentralisierung, In- 

/Outsourcing, etc.) 

5 Logistik 1 Optimierung Transportkosten (Routen, Verkehrsträger, Auslastung, Liefermodus, 

etc.) 

2 Optimierung Lagerkosten (Standorte, Personalkapazitäten, Automatisierung, etc.) 

3 Optimierung Bestandskosten (Dispositionsparameter, Bestandsreichweite, Cross- 

Docking, etc.) 

4 Ganzheitliche Lieferkettensteuerung (Bedarfsplanung, Auftrags- und 

Bestandsmanagement, Lieferantenmanagement, Differenzierung Servicelevel, etc. ) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The study is based on a comprehensive set of levers along the 

entire value chain – Special evaluation "Strategy" in 2011 

Study design 

VALUE CHAIN 

QUESTIONS 

Product Portfolio 

THE STUDY Importance of the lever: 

Innovation 

& Development 

Purchasing 

Production 

Logistics 

Sales 

& Marketing 

SET OF LEVERS 

How important do you think the 

lever is? 

Efficiency of the lever today: 

How efficient do you think the lever 

is in the company today? 

THE VALUE CHAIN 

p y y 

Controlling & Finance 

Working Capital Management 

Administration & Overhead 

Operations-Effizienz-Radar – CFO Agenda 2011 

Activities relating to the lever in 

2011: 

Are you planning specific activities 

to improve your use of the lever in 

2011? 

Special Evaluation 2011: Strategy 

Aim: Identify the strategic priorities that have impact on the activities along the value chain 



11

C. 

The CFO-Agenda 2011 


12

Results of the 2 nd Operations-Efficiency-Radar 

Overview 

I II Review 2010 

> The CFO-Agenda 

2011 consistently 

continues the 

chosen path 

> Focus on levers to 

enforce growth while 

simultaneously 

increasing 

efficiency 

III 

> The CFO-Agenda 2010 has successfully been implemented 

> The main activities planned in 2009 for 2010 have been conducted 

Outlook 2011 

> In 2011, the CFO-Agenda also focuses on Product Portfolio, Production and 

Working Capital – Purchasing and Logistics becoming more important 

> At the same time companies intensify their level of activities planned along the 

value chain by Ø 7%-points – Especially in the focus areas of the CFO-Agenda 

(Product Portfolio & Production) planned activities are increasing up to 70% 1) 

IV 

Special evaluation: Strategy 2011 

> Special evaluation "Strategy": Companies focus on organic growth (78% 1) ) 

and continuous improvement (67% 1) ) 

1) Percentage of companies planning activities in 2011 using the lever certain (4) and very certain (5) 



13

I 

OVERVIEW 

The CFO-Agenda 2011 focuses on levers to enforce growth while 

simultaneously increasing efficiency 

Outlook 

RESTRUCTURING 

ENFORCE GROWTH & 

INCREASE EFFICIENCY 

[Excerpt top-levers 2011] 

Enforce growth 

> Identify growth opportunities 

> Streamline the product/service portfolio 

> Develop a future-proof product/service portfolio 

> Optimize customer-oriented product/service features 

GROWTH 

Increase efficiency 

> Cut cross-functional product/service costs 

> Improve efficiency in production (continuous 

improvement, …) 

> Apply commercial purchasing levers 

> Optimize product innovation/development process 

2009 2010 

2011 2012 



14

II REVIEW 2010 

The CFO-Agenda 2010 has sucsessfully been implemented – The 

main activities planned in 2009 for 2010 have been conducted 

Implementation of the CFO-Agenda 2010 

Activities planned in 2010 

1) 

4+5 

As-Is Use 

COMMENTS 

1 

2 

3 

4 

5 

6 

7 

8 

9 


Production 

Working Capital 

Management 

Innovation & Development 

Sales & Marketing 

Logistics 

Purchasing 

Controlling & Finance 

Administration & Overhead 

36% 26% 

32% 24% 

32% 22% 

31% 21% 

25% 25% 

26% 23% 

30% 16% 

27% 17% 

24% 9% 

62% 

56% 

54% 

52% 

50% 

49% 

46% 

44% 

33% 

2010 2) 53% 

54% 

62% 

42% 

43% 

45% 

50% 

50% 

33% 

FOCUS 

CFO-AGEND DA 2010 

> The As-Is use of the 

levers is highest in the 

three areas where most 

activities have been 

planned 

> Only in the area 

Innovation & 

Development As-Is use of 

the levers does not reflect 

the originally planned 

activities 

> Basically, the CFO- 

Agenda 2010 has 

successfully been 

implemented 

Focus CFO-Agenda 4 4 = certain 5 5 = very certain 

1) Percentage of companies planning activities in 2010 2) Percentage of companies, judging the As-Is use of the levers as high (4), very high (5) 



15

III OUTLOOK 2011 

In 2011, the CFO-Agenda also focuses on Product Portfolio, Production 

and Working Capital – Purchasing and Logistics gain relevance 

CFO-Agenda – Focus 2011 1) 

Ranking 

2011 

Ranking 

2010 

PRODUCT 

PORTFOLIO 

PRODUCTION 

WORKING 

CAPITAL 

MANAGEMENT 

1 2 3 

LO- 

GISTICS 

PUR- 

CHASING 

1 2 3 6 7 

5 2) 

COMMENT 

> The CFO-Agenda 

2011 consistently 

continues the 

chosen path – 

Product Portfolio, 

Production and 


Management on the 

first three ranks as 

last year 

> Purchasing and 

Logistics gain 

relevance 

> Innovation & 

Development are 

less relevant in 2011 

4 2) 16 

1) Percentage of companies planning activities in 2011 certain (4), very certain (5) 2) Same result 


2nd_Operations-Efficiency-Radar_2011_fvs_E.pptx


Simultaneously, companies intensify activities – Planned activities 

along the value chain increase by Ø 7%-points 

CFO-Agenda – Dynamics 2011 1) , Overview over all levers 

COMMENT 

Activities 

planned in 2011 

Activities 

planned in 2010 

36% 20% 56% 

+7%-points it 

29% 20% 49% 

> In each area of the value 

chain companies 

intensify planned 

activities 

> Increase of activity level 

! 

by Ø 7%-points for 2011 

planned 

> Companies do not take a 

breath – Instead, they 

intensify planned activities 

in order to make up lost 

ground and prepare for 

possible setbacks 

4 4 = certain 5 5 = very certain 

1) Percentage of companies planning activities in 2011 certain (4), very certain (5) 



17


Especially in the focus areas of the CFO-Agenda, planned activities 

rise up to 70% 

Planned activities 2011 overview 

1 

2 

3 

4 

5 

6 

7 

8 

9 

FOCUS 

2010 2) Activities planned in 2011 1) 4+5 Trend rank COMMENT 

CFO-AGENDA 2011 

Product Portfolio 1 / 62% 

42% 27% 69% 

> Focus remains on 

top-3 areas 

Production 2 / 56% 

39% 27% 

66% 

> Almost 70% of the 

Working Capital Mgmt. 3 / 54% 

36% 24% 60% 

companies plan 


Purchasing 7 / 46% 

37% 19% 56% 

and Production 

activities 

Logistics 6 / 49% 

36% 20% 56% 

> Growth and 

efficiency are jointly 

Innovation & Development 4 / 52% 

34% 20% 54% 

pushed 

Controlling & Finance 8 / 44% 

37% 16% 53% 

> Purchasing and 

Logistics displace 

Sales & Marketing 5 / 50% 

37% 15% 52% 

Innovation & 

Development 

Administration & 

9 / 33% 

28% 11% 39% 

> Increased overall 

Overhead 

activity level 

Focus CFO-Agenda 4 4 = certain 5 5 = very certain 

1) Percentage of companies planning activities in 2011 2) Rank / Percentage of companies planning activities in 2010 certain (4), very certain (5) 



18


7 out of the top-10 levers are allocated in the two focus areas 

Product Portfolio and Production 

Top-10 levers: Activities planned 

PRODUCT 

2 Develop a future-proof product/ service portfolio 

8 Cut cross-functional product/ service 

PORTFOLIO 

costs 

7 Optimize customer-oriented product/service features 

INNOVATION & 

DEVELOPMENT 

5 Optimize product 

innovation/ 

development 

process 

CONTROLLING & FINANCE 

PURCHASING PRODUCTION LOGISTICS SALES & 

MARKETING 

4 Apply commercial 

purchasing levers 

WORKING CAPITAL MANAGEMENT 

ADMINISTRATION & OVERHEAD 

1 Improve efficiency 

in production 

6 Optimize indirect 

costs 

9 Optimize vertical 

integration in 

production 

10 Optimize 

planning and 

management 

3 Identify growth 

opportunities 

COMMENT 

> The top-10 levers 

2011 are focused on 

five areas of the value 

chain 

> Three out of five 

focus areas of the 

CFO-Agenda are 

addressed by top-10 

levers – Logistics and 


Management not 

addressed by the 

top-10 levers 

> 7 out of the top-10 

levers are allocated 

in the two focus areas 

Product Portfolio and 

Production 

Focus areas of the CFO-Agenda 2011 

Rank among Top-10 levers 2011 



19

IV SPECIAL EVALUATION 2011 

Special evaluation: Strategy – Companies focus on organic growth 

(78%) and continuous improvement (67%) 

Special evaluation: Strategy 

Lever 

Importance of 

As-Is use of the 

Activities 

COMMENT 

the lever 1) lever 2) 

planned in 2011 3) 

1 

Promotion of organic growth (new 

products, new customers, new markets, 

etc.) 

2 Promotion of inorganic growth 

(acquisitions, joint ventures, strategic 

alliances, etc.) 

3 

Improve preparation and conduct postmerger 

integration (PMI) for rapid and 

sustainable synergy realization 

4 Enhancing interdisciplinary cooperation 

(incentives, processes, performance 

measurement system / BSC, committees, etc.) 

5 

Strengthening / building / re-launch of 

continuous improvement of the total 

enterprise 

52% 

46% 

49% 

63% 

78% 

65% 

38% 47% 

34% 

43% 

40% 

54% 67% 

> Growth is the main topic 

78% 2011 

> 78% of the companies 

focus on organic growth 

> Nevertheless, 47% of the 

companies also plan 

inorganic growth 

> To realize further 

efficiency improvements, 

67% of the companies plan 

54% continuous improvement 

measures 

1) Percentage of the companies judging importance of the lever as high (4), very high (5) 2) Percentage of companies judging the As-Is use of the levers as high (4), very high (5) 

3) Percentage of companies planning activities in 2011 certain (4), very certain (5) 



20

D. 

Incorporation of the Operations-Efficiency-Radar in the 

planning process 


21

The Operations-Efficiency-Radar serves CFOs as discussion basis 

with functions and as decision-making support when planning 2011 

Process 

The 

Operations- 

Efficiency- 

Radar 2011 

Consolidate, 

prioritize and 

synchronize 

Set-up planning 

in functions 

Review strategy & 

targets 2011 

Review Operations- 

Efficiency-Radar 2011 

> Develop 

overall plan 

and adbudget 

for 2011 

> Break-down 

plan and 

budget along 

success 

factors for 

the CFO- 

Agenda 

Challenge & discuss 

with functions 



22

Based on ICV and Roland Berger experience 10 factors are crucial 

Success factors for the CFO Agenda 

1 Levers – Select the most promising levers for the company 

2 Goals – Define clear, measurable and ambitious goals 

3 Synchronization – Synchronize the levers to minimize friction losses 

4 Planning – Plan application of the levers: approach, milestones, results 

5 Requirements – Ensure that the basic requirements are met: resources, budgets, etc. 

6 Team – Define cross-functional teams 

7 Embedding – Integrate the goals into personal target agreements 

8 Control – Establish an effective project-controlling (monitoring) system 

9 Review – Conduct regular reviews with management 

10 Communication – Launch supporting communication within the organization 

Close 

synchronization 

with the 

corresponding 

functions 

SPEED – Definition of the CFO Agenda in the planning context to ensure a dynamic start in the 

consecutive year 



23

E. 

Your contacts 


24

Your contacts 

OLIVER KNAPP 

Principal 

Roland Berger Strategy Consultants 

Tel: +49 (0) 711 3275-7213 

oliver_knapp@de.rolandberger.com 

CONRAD GÜNTHER 

Mitglied des Vorstands 

Internationaler ControllerVerein 

Tel: +49 (0) 89 893134-19 

c.guenther@controllerverein.de 

THOMAS RINN 

Partner 


Tel: +49 (0) 711 3275-7349 

thomas_rinn@de.rolandberger.com 

Thomas Totzeck 

Consultant 


Tel: +49 (0) 89 9230-8126 

thomas_totzeck@de.rolandberger.com 



25

IT'S CHARACTER 

THAT CREATES IMPACT 

Please don't hesitate to contact us 


26

2nd Operations-Efficiency-Radar - The Top Levers ... - Roland Berger

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