Article

Right-sizing your cost base for COVID-19

Rapid cost re-calibration solution to maintain business continuity

Public social distancing obligations and guidelines are translating into various effects on business depending on the segment–demand-driven revenue losses, fulfilment-driven revenue losses, abnormal revenue phasing, portfolio imbalances and reduced workforce utilisation.

Businesses are rapidly left with a cost base, both direct and indirect, that requires immediate right-sizing to fit the interim shape and size of their portfolio’s performance. This unprecedented right-sizing requires significant attention and focus –this is not solely an accelerated ‘cost reduction’ exercise. 

How our approach can help you respond and inform your stakeholders

  • Assess activities to stop immediately
  • Re-assess how to conduct middle and back office activities
  • Scale-down activities related to long-term contracts
  • Prioritise existing contracts and live customers over new business
  • Identify best practice cost performance and right-size to adjusted revenue forecast 
  • The interim operating model must enable rapid scaling
  • Assess outsourcing and contractor models 

Learn more about how we can help you respond and inform your stakeholders

Combating COVID-19 with resilience

Back to home
Did you find this useful?