Podcast
Hackett Launches Breakthrough Performance Diagnostic: Provides Functional Enterprise Assessment in Less Than One Week
MIAMI & LONDON, April 29, 2020 – The Hackett Group’s research finds that most companies will need to reduce SG&A costs by 15-30% to align costs with significant revenue declines due to the global pandemic. In response, The Hackett Group, Inc. (NASDAQ: HCKT) has launched a new Performance Diagnostic offering which enables companies to move from data capture to performance results in less than one week.
The diagnostic is designed as a rapid assessment tool to help companies make informed decisions on current and post-pandemic plans across corporate finance, procurement/supply chain, human resources, and information technology. The diagnostic allows companies to quickly evaluate their current cost structure and model recovery scenarios to determine the right operating model and actions necessary in the current demand-starved business environment.
“We’ve been sharply focused on helping companies manage through this crisis,” said Ted A. Fernandez, Chairman and CEO of The Hackett Group. “Most businesses are facing significant revenue declines and will need to make difficult cost reduction decisions that will not hamper post-crisis growth once it rebounds.”
“Our new Performance Diagnostic tool helps companies determine how best to do this,” said Fernandez. “The tool can help companies decide how to best align with their company’s revenue declines by pinpointing actions to operate efficiently, re-align costs, and optimize liquidity and cash flows.
The Hackett Group’s Performance Diagnostic tool relies on data captured in The Hackett Group’s industry-leading proprietary benchmarks. The diagnostic can be used to model all selling, general & administrative (SG&A) functions, or individual functions. The rapid assessment tool assists leaders to make informed decisions within five days or less and it typically takes just one day to complete. Executives can also run up to three recovery scenarios to make informed decisions around business plans and organizational models.
The Hackett Group’s research concluded that the typical company (with $10 billion in revenue) will need to reduce SG&A by 15%, which translates to $241 million in expense savings, to maintain their pre-crisis ratio of SG&A to revenue. Companies of the same size seeking to prevail in the next normal and achieve top performance will need to reduce SG&A by 30%, which translates to $486 million.
Since mid-March, The Hackett Group has produced more than 20 research pieces designed to help companies respond to the global crisis, including its 2020 Disrupted series and Coronavirus Response Guides for all major business services functions. This research is all available free at https://www.thehackettgroup.com/coronavirusresponses/.
About The Hackett Group, Inc.
The Hackett Group (NASDAQ: HCKT) is an intellectual property-based strategic consultancy and leading benchmarking and best practices firm to global companies, with offerings that include smart automation and enterprise cloud application implementation. Services include business transformation, enterprise analytics, global business services, and working capital management. The Hackett Group also provides dedicated expertise in business strategy, operations, finance, human capital management, strategic sourcing, procurement and information technology, including its award-winning Oracle and SAP practices.
The Hackett Group has completed nearly 18,000 benchmarking studies with major corporations and government agencies, including 93% of the Dow Jones Industrials, 90% of the Fortune 100, 80% of the DAX 30 and 57% of the FTSE 100. These studies drive its Best Practice Intelligence Center™ which includes the firm’s benchmarking metrics, best practices repository and best practice configuration guides and process flows, which enable The Hackett Group’s clients and partners to achieve world-class performance.
Cautionary Statement Regarding “Forward Looking” Statements
This release contains “forward looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, seeks”, “estimates” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward looking statements. Forward looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward looking statements. Factors that may impact such forward looking statements include without limitation, the ability of Hackett to effectively market its digital transformation and other consulting services, competition from other consulting and technology companies who may have or develop in the future, similar offerings, the commercial viability of Hackett and its services as well as other risk detailed in Hackett’s reports filed with the United States Securities and Exchange Commission. Hackett does not undertake any duty to update this release or any forward looking statements contained herein.
