Businesses have been inundated with challenges and change at a speed, scope and scale that is unprecedented. From changing employee mindsets and shifting customer demand to supply chain disruption, geopolitical uncertainty and record inflation. Rather than a simple cost-cutting exercise, organizations need a long-term capability that looks beyond short-term financials to deliver ongoing productivity improvements that fuel growth.
Reinvention requires a fundamentally new approach to cost, driven by rethinking priorities and redeploying resources as a key strategy to drive growth and resilience. Sustained cost transformation requires aligning financial decisions with human behaviors.
Accelerate cost transformation to drive sustainable growth
Cost interventions may have helped organizations manage through volatility, but the one and done approach doesn’t work in a world of constant change. Instead, companies need a holistic approach that incorporates people, productivity, sustainability, data and technology to redesign the way companies work.
5 WAYS LEADERS CAN BATTLE INFLATION AND UNCERTAINTY TODAY
DON'T JUST REDUCE COSTS—TRANSFORM THE
SPOTTING TRUE COSTS AMID AMBIGUITY
COST TRANSFORMATION: THE BIG RESET
With signs pointing to continued inflation and uncertainty, companies have a two-fold mandate before them: to accelerate investments in growth while transforming costs holistically for stronger resilience. Executives remain optimistic about achieving their growth goals, but they acknowledge it won't be easy. In this blog post, Managing Director Praveen Kishorepuria lessens the load with five ways to manage through uncertainty in the here and now.
In the truest sense, cost transformation means optimizing costs in a way that's sustainable over time. But how do you do that when change happens faster than ever? The answer lies in modernizing your capabilities for resilience.
Leaders today need real-time visibility into cost drivers across the value chain so they can pinpoint where spend is going, how it's impacting business and how to redirect it. The tools are here: In fact, there's a growing gap between what technology and data science can do and what they're actually being used for.
With an advanced, cloud-based analytics platform, leaders can forensically evaluate cost structures and model new zero-based ones. They also gain insights to create a new, cost-conscious organizational culture to drive true transformation for long-term sustainability and success.
Before you can make decisions to maximize profit, you must first understand your cost structure at a granular level. Learn about the "cost-to-serve" methodology, a new, AI- and analytics-driven approach to illuminating your "true" costs and profitability down to the product, SKU, customer, and channel levels.
Gone are the days of simply passing through costs and increasing prices. Cost-to-serve considers both traceable and untraceable costs for a complete view of cost drivers across your value chain. With a deeper and more comprehensive line of sight, you can allocate more precisely and make more powerful moves to respond to, prepare for and embrace change.
Leading organizations are no longer singularly focused on cost-cutting and survival. Instead, they're reinventing for growth and productivity by starting from scratch with cost transformation.
This big reset revolves around three core tenets: technology, sustainability and talent. Our report breaks down the four keys to successful cost transformation and profit acceleration, outlining how future-ready companies address challenges holistically across the organization to foster growth, resilience and competitiveness.
Cost & Productivity Reinvention creates a window into all parts of an organization and its business. Use your vision to solve the biggest business challenges with solutions that have yet to be conceived. Build a career by helping global clients reimagine their organizations in an ever-changing business landscape.