Business Model Optimization Handbook

A solid footing for sustainable value

The alignment of a multinational company’s operating model and its global tax planning enhances the opportunity for value creation. But that’s no easy task. Each must adapt to satisfy the demands of the other.

Business Model Optimization (BMO) is the process of pursuing this balance and integrating the operating model and global tax planning into the way a business operates.
 
Both sides of the equation are subject to powerful forces—from the market, from regulators, and from the internal pressures that result from growth. Tax planning that is not based on operations runs the risk of curtailing the bottom line. And a business model that does not take tax into account may end up surrendering some or all of the profit it creates.

Building a structure that presents the right balance that can be sustained over time takes a commitment of senior management to a transformation of key functions embedded within the operating model and in some cases, the wholesale transformation of the company on a regional or global basis. The change needs to be substantive and real and it’s seldom easy. But the opportunities for a more efficient business model and sustainable and scalable tax savings are there.