Growth and efficiency improvement are not contradictions in terms – the Match Point Management tool from Roland Berger Strategy Consultants

• When times are good, many companies focus only on growth and postpone improving efficiency
• Sustainable profitable growth, however, demands action on the market and cost sides simultaneously
• This strategy can be precisely managed and implemented with Roland Berger's Match Point Management tool
• More information in the newest issue of Roland Berger's client magazine "think: act content"
• Quick test for companies is available on the website

Traditionally thinking companies invest first to expand their market share and grow. Only later do projects for improving efficiency receive attention. Yet today's dynamic markets require a different approach: to achieve sustainable, profitable growth, companies have to expand their market share while optimizing their cost structure. Harmonizing the necessary actions is a challenge. For companies that wish to master this challenge, Roland Berger developed Match Point Management. This tool allows companies to analyze their market and cost performance in comparison with their competitors, derive possible improvements and develop specific actions to implement them.

"Match Point Management helps companies grow sustainably and profitably," says Björn Reineke, Partner in the Marketing & Sales Competence Center at Roland Berger. "In this way, companies can build muscle instead of fat." In fact, some companies that have directed their strategy unilaterally toward expansion do indeed grow, but at the same time their earning power declines. This means that sales grow, but the necessary investments – such as in a larger sales force or new branches – are disproportionally large. "The strategic challenge for these companies is in growing operations while permanently restructuring, and thereby continuously adjusting efficiency," says Reineke.

At first glance, this strategy of optimizing the cost and the market side at the same time seems to have a conflict of goals. In a survey by Roland Berger, roughly three-fourths of managers report that efficiency and growth targets are difficult to reconcile. "That's why we developed our Match Point Management method," says Lars Luck, Principal at Roland Berger. "This allows management to take action on both levers simultaneously: external market potential as well as internal efficiency."

Three steps to success

Match Point Management is comprised of three steps: In the first, a company's market and cost performance is compared to its competitors'. The CEO report compares the results based on publicly accessible data on market shares and cost structures with the values from the relevant industry. The report also visually depicts company performance compared to competitors, thereby creating a basis for complex decisions. It is essential to have employee support, particularly for optimizing market and efficiency potential at the same time."In good times, if there is no apparent reason for lowering costs, you need good arguments to motivate the team to realize efficiency projects," says Björn Reineke.

Match Point analysis takes place in the second step, using internal company data to assess the performance of individual divisions or subsidiaries. Combined with surveys, a "quick check" enables companies to produce a self-evaluation that is as objective as possible. This process yields a detailed picture of a company's own strengths and weaknesses as compared to competitors and industry best practices. With the help of special web diagrams, concrete optimization potential can be fleshed out.

In the third and final step, the Match Point Management toolbox provides a comprehensive range of optimization tools. These make it possible to actually implement the potential improvements identified in the Quick Check. This includes short-, medium- and long-term levers – from traditional upselling on CRM projects to sales benchmarking.

Match Point Management is excellently suited to quickly and pragmatically depicting a company's positioning in its competitive environment. It is especially good for industries with relatively interchangeable products and a market position strongly influenced by marketing and sales. You can quickly calculate your company's Match Point Index at:

www.matchpointmanagement.com