A firm's approach to cost management is one of its most important levers in achieving profitability.
Cost management includes human capital management, process efficiencies, technology investments and rationalization, and benchmarking to establish best demonstrated practices. SG&A optimization is especially important for companies facing immediate cost pressure from events such as management changes, customer relationship/channel management changes, or significant regulatory or technology changes. Process enablement and Technology spending has been growing steadily and now represents the largest areas of “getting it right” for most businesses, making it imperative that executives focus on spending the right amount in the right places.
Human Capital management involves resource allocation and utilization, which can result in a company having lower people requirements (or improved staffing timing), as well as enhanced roles, responsibilities and utilization. A stronger financial position gives a firm more freedom and flexibility in how it approaches all competitive threats. Focusing the firm's efforts on the most value-yielding targets is often the biggest challenge management faces in managing resources. Taking out non-value additive costs begins with an understanding of the underlying cost structure of a firm and its competition.
“How would we run this?”
iServiceX has worked on cost & capital management for companies across a wide range of industries. We often approach cost reduction efforts with a “How would we run this?” perspective that is deeply rooted in our culture: a belief that sustainable benefits may frequently be derived from very practical solutions.
We use several tools to perform rigorous analysis of your overall financial position, competitive market dynamics, and cost position relative to best-demonstrated practices. We have demonstrated the ability to routinely help you discover and correct meaningful cost inefficiencies quickly and often in the early stages of a broader case analysis. IServiceX completes every case involving cost reduction with a thorough quantification and presentation of savings realized.
Most global 1000 companies have performed multiple cost reduction exercises in recent years. Many have initiated strategic sourcing and business process reengineering solutions, resulting in valuable efficiencies that improve the bottom line and create shareholder value. However the dilemma is that these initiatives alone may not produce the efficiencies that companies hope to attain.
Today's intensely competitive business environment is forcing CEOs to rethink their companies' cost structures, while simultaneously questioning whether their current business design will still be viable in the future.
Our approach is distinct from other cost reduction efforts in these specific areas:
- We address the entire organization and enterprise
- We work with you to decide on key strategic issues throughout the project
- Opportunities are rigorously evaluated and prioritized against the entire cost base
- The governance model helps the organization and its employees to be accountable for the project and its targets from the beginning of the project
It is an effort that promotes significant changes in companies' cost structures and business models. By targeting cost improvements we produce highly sustainable results for our clients.