Cost reduction: Bridging the gap
Making cost savings real and making them stick
Cost reduction efforts often fail to deliver their expected savings; consider ways to bridge the gap in your cost reduction program and realize the savings on a sustainable basis.
It is a time of low growth. The Canadian dollar has fallen against the US dollar to a value not seen in more than a decade, putting entire sectors of the economy at risk. Deloitte’s Cost reduction: Bridging the gap explores a range of challenges that can derail cost reduction efforts and considers ways to overcome them at different points.
While the challenges of low-growth and weakened financial performance might call for a whole range of responses, cost reduction remains among the most common and effective – provided it’s done right.
Robust and realistic
We outline a three-stage approach to identify and eliminate costs in a way that is not only robust and systematic but realistic as well.
- Setting the stage – Strategy and planning: deciding and articulating what the targeted savings are, where they will come from, who is accountable for them and how they will be achieved.
- Driving execution – Putting the plan into action and committing the resources to achieve the targeting savings.
- Keeping costs out – Actions and decisions that need to be taken after the targeted savings have been realized to ensure they stick and that costs don’t creep back in.
To learn more, download Cost reduction: Bridging the gap.