In Accenture’s experience, analyzing activities across an entire value chain typically uncovers 15 to 30 percent more waste on top of what targeted functional, or process reviews find, two and those savings can be additional fuel for growth.
Not only that, the multiple lenses of a value chain analysis make more transparent how different activities should work together to produce valued outcomes. Such lenses can identify a need for additional investments in some areas, and they can show where investments can be redeployed to support growth objectives when resources are released from wasteful activities.
Take, for example, the experience of one global consumer products company. Accenture used zero-based principles as part of a broader strategic business transformation to uncover hundreds of millions of dollars in non-productive spend, which the company reallocated to fund new business models and markets.
But the work didn’t stop there. By analyzing the value chain, Accenture found that 80 percent of the FTEs weren’t involved in creating valued outcomes and that 70 percent of FTEs performed what was characterized as “base-level” or “non-expert” work. The company also identified specific activities in the value chain that involved rework, and found that just ten tasks were responsible for 40 percent of all rework costs.