Executing the right cost-reduction strategy can be a game changer! While most companies reduce costs as a reactionary measure to stabilize their business, those focusing on cost optimization to build resilience and growth will lead the competition.
1. Develop a cost model that aligns to your business strategy.
2. Adopt “zero-based budgeting”:
Require all expenses to be
justified as part of your annual
planning cycle.
3. Gain alignment vertically and
horizontally in your organization
on the importance of reducing
waste and managing costs.
4. Create budget line items for cost
and waste elimination in all
functions and cross-functional
value streams.
5. Create sustainability by
adopting a measurement
system that ensures visibility
and accountability for cost
optimization in all areas of the
business.