Nearly all companies are faced with the challenge of driving efficiency and cost-savings programmes at some point. The success rate of such processes largely depends on how they are set up and managed.
In the economic landscape of today, most companies and public institutions are forced to drive their businesses efficiently and effectively. Few executives have the luxury of ignoring the agenda of cost reductions. After all, in most sectors, Western European companies face the challenge of having to structurally increase their productivity – and public sector spending is also under scrutiny, forcing institutions to realise synergies and take out incremental costs.
Our whitepaper is intended for semi-public or private organisations that pursue larger budget analyses or cost-out programmes. The decisive factor is not the scope of the targeted costs, larger cost-out programmes, in many cases, do not target the entire cost base. In our experience, the critical factor for success, i.e. actually being able to realise cost savings, is how you set up and manage the programme.
Based on QVARTZ’s work across a large array of industries and cost scopes, we have five key beliefs.
- Put the cost reductions into a relevant context
- Base the work on robust hypotheses
- Set up and plan the process thoroughly
- Insist on tangible initiatives
- Plan the implementation