Story Leadership Next Generation Leadership Advisors #HeadsUp Newsroom Careers
Real-time Case Studies
Natural Resources Mining + Metals Oil + Gas Private Equity Small Business Center Energy Building Materials Aerospace + Defense Industrials Agribusiness Automotive + Assembly Chemicals Consumer Packaged Goods Engineering Food + Beverage Industrial Goods Pharmaceuticals Financials Services + Insurance Distribution + Logistics Technology Transportation Utilities
Operational Strategy Operational Improvement Supply Chain Maintenance Repair + Operations Working Capital Risk Management Customer Experience Sales Force + Support Pricing + Cash Transformation Design and Program Management Digital Transformation People Solutions™ Cultural Change Leadership Talent
Publications Videos Blog

Taming wild costs

Jan152015_Mining-Cost-Reduction-BLOG-BANNERBased on our past experience with clients, most internal cost-cutting initiatives are short-term and do not have a significant impact on an organization’s P&L. Once it is evident these initiatives are not viable, executives typically reconsider, abandon or relaunch them at a later date. Delays like these result in lost opportunities and missed chances to gain a competitive edge in the marketplace.

In order to produce meaningful and sustainable results, executives should make cost reduction decisions based on company culture and then implement the changes across the entire organization. An aligned and engaged workforce can rapidly improve quality and service levels, reduce unit costs, and increase revenue and profit margins.

Key elements of sustainable cost reduction include:

  • Minimize non-essential spending – Costs that are not imperative to day-to-day operations should be eliminated.
  • Target cost drivers – A thorough analysis of operating cost sources and understanding the correlation between
    financial and operational plans will provide a higher degree of transparency and improve accountability.
  • Responsible third-party spending – Solid third-party contracts will help reduce costs and fortify the supply chain.
  • Embed fiscally responsible mindset –Every employee should be encouraged to manage and control spending.


Read article

Recent Posts


see all