Omar I. Aguilar
Drivers for Cost Reduction
- The most frequently cited cost management barrier was "lack of understanding and acceptance of the solution." However, the barriers with the greatest impact on success were more technical in nature, specifically, "a weak business case" and "erosion of savings."
- The top "lessons learned" from managing costs over the past 24 months emphasize the importance of teamwork and buy-in, realistic goals, effective communication and improved planning.
- More than 50 percent of respondents expect to continue relying primarily on the cost reduction approaches they have used in the past, despite the fact that such approaches are less and less likely to bear fruit.
- Friday Business Feature: Corporate Budgeting Should Be a Tool for Strategic Focus — As companies begin the annual budgeting process, they should step back and focus on the capabilities that make them different and better — then double down on those