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15 okt 2019

Successful cost optim­ization

through high involvement and well aligned actions with company strategy

Thoughts

Successful cost optimization projects occur when they are used as a tool to support the company strategy.

Successful change management comes from within the organization itself. To succeed with companywide cost optimization programs, necessary actions must be taken and driven by stakeholders within the organization.

A key success factor is the establishment of high acceptance from the organization, achieved by broad stakeholder involvement and clear communication of measurable results at an early stage. Therefore, the process should be structured to achieve fast results and the communication needs to be transparent. A well-planned change management process will not only result in short-term gains but is the key to achieve sustainable results from a cost optimization project.

To achieve sustainable results the change management process must be
customized to match the unique situation and organization

Proactive cost optimization and alignment with business strategy

In a previously published article, the case was made that the most successful cost optimization projects are proactive and well planned, and not made at a stage where across-the-board room cuts are made. Depending on the business state and management focus, the focal point of the cost optimization program will be different. Sustainable results will thus only be achieved when the program approach is aligned with its purpose.

Want more?

In this PDF you get two great models to make sure you’re cost optimization project runs in line with your organization.