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. 

Business Cost Optimization

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

Map coverage

To discuss about your cost drivers and desired cost-cutting goals.

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ECM Consulting Group | United States