Doing more with less
Due to the challenges 2016 has presented, business leaders have the hard job of cost optimisation. The Hackett Group shares some ways to cut costs without causing a catastrophe.
Increased globalisation and competition; disruption innovation; digitalisation and the need for greater product customisation; and an uncertain economic and political situation are just some of the many challenges faced by businesses in 2016.
As a result, leaders of enabling functions such as finance, human resources, procurement and IT are being challenged by the business to do more with less. No matter if it’s improving functional cost effectiveness, rationalising procurement spend or releasing cash through optimising working capital, the common mantra is: be more productive.
There are three core requirements to address in driving cost optimisation:
- setting realistic goals that balance what must be achieved by the enterprise with what can be achieved function by function;
This is an extract from the Finance & Management Magazine, Issue 248, November 2016.
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