Selling, General & Administration (SG&A) Cost Reduction Focus
Distribute Work According to its Value
Crucial to any cost-reduction effort is to understand what work gets done, how it adds value, and where that work should be located within the organisation. In our experience, there’s typically a huge gap between where most companies currently perform work and where that work should be performed for greater efficiency and flexibility. A Deloitte method called the “lean staff model” has proven particularly successful in scrutinising how key work processes deliver value. The lean staff model uses a 2 x 2 matrix to categorise each SG&A function and process along two dimensions.
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