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Strategic Cost Management
Cost reduction solutions to help drive growth
Not all business costs are the same since they drive results in different ways. Therefore there is no "perfect" portfolio of costs or investments. An effectively managed portfolio is one that balances short-term and long-term objectives, so making radical changes in cost performance is typically a challenging proposition.
Balanced transformation for strategic cost management
Deloitte’s Strategic Cost Management offering focuses on structural, enterprise-wide changes that can produce sustainable cost savings and margin improvements. In doing so, we strive to help our clients build scalable cost platforms to drive profitable growth. Based on extensive experience with cost improvement programs across industries, our services generally fall into four broad transformation strategies to help organizations address their specific cost and strategic challenges.
Strategic Cost Management services
Save to turnaround. Focus on immediate cost reduction solutions, maximize liquidity, bring stability, and capture savings to avoid further deterioration of the business.
Save to fund. Focus on actions that help improve cost and competitive position, avert cuts that might inhibit future growth, and rebalance costs to fund investments in business strategy enablers.
Save to grow. Enable or develop a scalable cost or business platform to fuel growth and investment in core capabilities while supporting a differentiated business strategy.
Save to transform. Improve business operations through application of disruptive cost approaches such as automation and cognitive solutions to enable agile strategies in the business and set the stage to thrive in a fast changing market environment.
Dbriefs Webcast: Saving to transform: Cost management trends and implications for CFOs
June 18 | 2 p.m. ET | 18:00 GMT
Participants will explore results of Deloitte's second Global Cost Survey and insights into leading margin improvement practices.
Advantages of strategic cost management
- Structural, not continuous improvement focused
- Enterprise-wide and programmatic, not a point solution
- Tailored, not a “one size fits all” approach
- Financially balanced, so it leverages quick hits to fund longer-term opportunities
- Results-focused, not distracted by obstacles along the way
Quick and decisive action around cost performance can help the business regain its balance.
Traditional cost and margin improvement approaches are no longer sufficient in a world facing digital disruption and exponential technologies. Visit our Strategic Cost Management topic page for more articles, videos, and insights on how to effectively manage costs.