Cosmetics · Case study
Reducing sales-force costs through zero-based budgeting.
A cosmetics company redesigned its sales force in a zero-based budgeting engagement, reducing the cost of its sales-force structure by 20%.
Client context
The business context.
A cosmetics company applied zero-based budgeting to its commercial organization. The engagement focused on reducing costs through sales-force redesign, with the sales-force structure as the defined scope of the work.
The organizational design and the cost objective needed to be addressed together. The relevant measure was the cost of the sales-force structure, rather than a company-wide savings target.
The work
How the engagement was delivered.
Redesign the sales-force structure
Applied a zero-based approach to the sales organization, using structural redesign as the means of reducing costs. The work connected the commercial organization’s design with a specific cost-reduction objective.
What changed
A 20% reduction in sales-force structure costs.
The engagement achieved a reported 20% reduction in the cost of the sales-force structure. This result relates to that defined cost base; it is not a measure of total company costs, headcount or revenue performance.
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