Rapid Profit Transformation (RPT)

Rapid Profit Transformation identifies profit improvement opportunities to address profitability levers across revenue, cost and capital to address liquidity and unlock value for a more flexible, cost-effective, and resilient organization.

Today’s executive teams and boards are rethinking their strategies to effectively deal with disruption and prepare for transformation amidst drastic change. Faced with the duality of growth dilemma: they must deliver consistent financial performance and create value for shareholders today - while simultaneously innovating and growing the business for tomorrow.

As powerful forces reshape business, and market volatility leads to greater uncertainty about the future, organizations in every industry are grappling with these seemingly competing demands. While companies address the safety of their employees, customers and communities, they must also evaluate opportunities for top line growth in parallel with cost saving opportunities.

In the face of complex challenges, the most successful organizations choose to not only streamline their cost structure and protect their current business, but to also focus on rapidly innovating for a potentially disruptive future.

The RPT solution helps organizations create and unlock value, simplify the business and create a more flexible and cost-effective organization for greater competitive agility. EY teams help identify, prioritize and implement initiatives addressing a wide range of revenue, costs, liquidity and capital opportunities.

How EY can help:

  • Evaluate your portfolio to identify and prioritize sources of value
  • Analyze and prioritize opportunities to redesign processes, address underperformance and improve cash flow
  • Identify and streamline high-value customer experiences for greater efficiencies and effectiveness
  • Create incentives to change the way businesses approach their spend
  • Help deliver sustainable cost and revenue improvements

An organization’s business is evaluated across:

  • Revenue and margin enhancement
  • Operational agility and cost competitiveness
  • Capital expenditure and cash release

RPT framework

The EY RPT framework addresses key business needs to realize and sustain top- and bottom-line performance improvement:

  • Revenue and margin:

    1. Initiatives include product & pricing optimization
    2. Revenue assurance
       
    Key questions to ask:
    • How are our revenue streams evolving for the future – products, services, markets, channels?
    • How is profitability evolving?
    • Who are our most valuable customers?
    • How do we best attract, retain and serve them?

       

  • Selling, general and administrative (SG&A) operations:

    1. Process optimization
    2. Talent management
    3. Spend management
    4. Zero-based budgeting
    5. IT Cost optimization
       
    Key questions to ask:
    • Where can we find savings to help fund longer term efforts?
    • How can we effectively and efficiently structure our operations to take advantage of automation opportunities?
    • How do we keep costs from creeping back in?

       

  • Capex and cash:

    1. The Capital Agenda
    2. Working Capital
    3. Tax Optimized Operating Model
       
    Key questions to ask:
    • How can we free up additional cash?
    • What is the most effective way to manage our capital portfolio and prioritize investments to improve return on invested capital (ROIC)?
    • Have we captured all available tax credits?

       

  • Sustainable value realization:

       
    Key questions to ask:

    • What are our governances to realize the full value and sustain the transformation agenda?
    • How do we selectively release old practices and beliefs and institutionalize new ones?
    • How do we effectively engage our workforce to embrace the transformational changes and new ways of working?

       

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