Cost Optimization
Ensuring your cost structure supports sales growth
We help companies to optimize their Sales and General and Administrative (SG&A) expenses. We typically can deliver profit improvements of 10-30% for our Clients.
When faced with pressure to cut costs, some companies go about it the wrong way. Executives assign a higher priority to short-term cost-reduction tactics and demonstrate less appetite for longer-term initiatives.
From accounting to marketing, a portion of the activities performed across the SG&A platform are non-value added.
These activities accumulate over time, and when combined with sub-optimal organizational structures and a narrow span of control, resulting in expensive, complex, and reactive SG&A platforms unable to effectively and efficiently support the business.
“At ECM Consulting Group we think the cost structure is an outcome of the choices a company makes regarding where to invest. Instead of across the board expense cuts, to approach cost optimization the right way, a hard look needs to be taken at the essential capabilities that are needed to make the company more competitive in the marketplace.”
Value to our Clients
-
A data-driven approach tailored specifically to your needs to build the business case and drive change across the SG&A platform.
-
Experience in your industry that will be leveraged to challenge the current state and build an optimized future state.
-
Deep organizational redesign experience to envision and deploy a new service delivery model focused on supporting your growth agenda while lowering the SG&A expenses.
-
An outcome-driven mindset focused on delivering early wins and fixing processes for the long term.
-
Zero tolerance for “waste” which will translate into high impact recommendations to lower cost and free up capacity.
-
The situational awareness that cost transformation must be anchored in the context of your strategy (i.e., enable growth).
-
Recommendations that create cost leverage, increase SG&A agility and scalability and build new capabilities.
-
A focus on change management that incorporates your readiness and the conditions required to “make change stick”.
Our Approach
Fact base development
-
Cost segmentation by function. We typically can deliver profit improvements of 10-30% for our clients
-
Conduct functional benchmarks
-
Conduct spans & layers and service delivery model analyses
-
Conduct additional analyses as needed (e.g., compensation, legal rates, activity analysis survey)
Opportunity hunt
-
Spans and layers: Ensure that the breadth of reporting lines to the front line is appropriate
-
Value stream mapping/LEAN: Minimize duplication and ensure only “value” activities are undertaken
-
External benchmarking: Create a clear view of what “good” looks like
-
Process redesign: Eliminate redundancies and streamline processes
-
Cost/value driver trees: Decompose costs into their underlying drivers and address the drivers
-
Contractor assessments: Investigate the reliance on contractors and the efficiency of their use
-
Operating model: Redefine allocation of responsibilities and where work is done
Mobilizing and implementation of the program
-
Execution support
-
Estimation of savings and investment required
Regions covered by our Firm
.png)
