Rapid Cost Reduction

Challenge

Over the last three years, the cost gap between world-class and the average of the companies that we have benchmarked has increased by 48%. This means that for companies that have not launched or maintained performance improvement initiatives in the last three years, the opportunity to improve is significant.

In today's dynamic global markets, companies must often move swiftly to adjust their operating structure and related cost to the realities of their environment. Whether it results from a deceleration or acceleration in demand, an acquisition or simply a change in leadership with an eye to improving the firm's competitive positioning, executives need fast, accurate and actionable insight to guide their actions.

The performance opportunity that companies target is usually determined by the extent of the change they want to effect. Implementation of a rapid cost reduction program will normally focus on process redesign and the reconfiguration of existing systems. A strategic program would contemplate broader pursuits that would consider offshoring, outsourcing, the replacement or rationalization of existing business application platforms.
G&A Cost Gap 2005-2007 (in Millions)

The cost gap between world-class and average performance has increased by 48% over the last 3 years.

Hackett Solution

Using a "proprietary" benchmark process and best practice implementation capabilities, Hackett can quickly help an organization size the opportunity for improvement at a process level, while also providing the required business process blueprint guidance that allows an executive to determine the level of improvement they should target as well as the assurance that the actions are sustainable and preserve or improve the long-term effectiveness of the enterprise.