Improving results?
Companies must keep in mind six elements of an effective cost reduction program that will enhance competitive advantage:
1. Vision aligned with corporate strategy and supported by executives
2. Hypothesis-driven approach focusing efforts on areas with highest benefit potential.
3. Portfolio of initiatives that drives an integrated roadmap for change. A portfolio of near-term quick wins and longer-term transformational programs may help create a “self-funding” program that uses early savings to potentially help fund longer-term initiatives with higher results.
4. Experienced program management (including change management) with a proven methodology and supporting tools that drive execution and keep projects on track.
5. A robust benefit-tracking process embedded within existing processes to enforce accountability and determine whether financial value is ultimately achieved.
6. Sustainable initiative focused on transferring knowledge to induce a cost reduction culture, perform change management, and measure the results through performance management systems
1. Vision aligned with corporate strategy and supported by executives
2. Hypothesis-driven approach focusing efforts on areas with highest benefit potential.
3. Portfolio of initiatives that drives an integrated roadmap for change. A portfolio of near-term quick wins and longer-term transformational programs may help create a “self-funding” program that uses early savings to potentially help fund longer-term initiatives with higher results.
4. Experienced program management (including change management) with a proven methodology and supporting tools that drive execution and keep projects on track.
5. A robust benefit-tracking process embedded within existing processes to enforce accountability and determine whether financial value is ultimately achieved.
6. Sustainable initiative focused on transferring knowledge to induce a cost reduction culture, perform change management, and measure the results through performance management systems