Strategic Cost Management
Increasingly, companies are looking to maximise the return on their investment in people.
We know that optimal ROI comes from having the right people plan, the right people,
who possess the right capabilities, working in the right roles, at the right times with the
right rewards.
But the global recession is now forcing many organisations to align their staff costs with
falling revenues. And with people expense accounting for up to 70% of total operating
expense in many companies, it’s not surprising that organisations are realising that the
effective management of staff costs is critical to long term profitability.
A wide range of cost management levers are available, but selection of the appropriate
lever(s) is critical to success. While a “rightsizing programme” may offer distinct benefits,
the associated risks must be carefully managed to ensure optimal return on investment.
In our experience, an integrated approach to plan, design and implementation is crucial to
achievement of desired people and financial outcomes.
We offer a number of strategic cost management services including:
• Cost Management Strategies
Design of strategies and programmes to maximise efficiencies and deliver measurable savings in people costs
• Rightsizing Programmes
Design of business-led rightsizing programmes - to achieve specified business, people and financial objectives
• Contingency Plans
Design of measured and timely actions in response to deteriorating business performance
• Programme Management Support
Provide guidance and support to internal resources
• Demand Support
Organisation structure re-design options and de-layering to maximise savings and accountability
• Supply Support
Exit package design & modelling to deliver required financial savings within acceptable cost parameters
• Re-design of Remuneration Programmes
Align future staff costs (fixed and variable cash compensation, benefit plans) with expected business results
• Business Case
Preparation/validation to ensure acceptable return on investment and payback
• Change Management & Communications
Building acceptance & support among key stakeholders