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How we helped
$1bn
cost take-outs over five years
After a phase of intensive M&A activity, a $20 billion defense company needed to find synergies across different arms of the business. The company had missed operational targets and investors were pressuring the company to deliver. Leadership enlisted AlixPartners to lead a transformation and position the company for growth.
Our team of transformation and defense-industry experts created a transformation management office to provide governance and establish the cadence and consistency of action from executive leadership to execute the transformation. We categorized and validated input data and then leveraged our partnership with data-intelligence firm Palantir to identify the main cost drivers in the organization and build a cost baseline for $15 billion of spend.
The defense company helped identify workstreams that could be optimized, and together we prioritized gaps to implement a phased approach that targeted high-priority items and quick wins to build momentum.
By the following financial year, the company saw more than $120 million in cost reduction across multiple functions. Our team identified an additional $250 million of cost take-out in the pipeline and developed a plan to achieve $1 billion in cost take-out over the following three years.
These actions and deliverables were girded with executive communications for board meetings, investor presentations, and the executive leadership team. Not only was the transformation robust and timely, it had the support of key stakeholders.
