The traditional approach the management takes in a financial crisis is to cut costs by releasing employees, cutting expenditures across the organization and by pushing the sales through offering discounts on products & services and to wait for the market to recover.
The result in most of the companies is that the cost cutting initiatives were not sustainable and only brought temporary financial relief and a less capable operation once the market has recovered.
At SBS Consulting we support our customers by performing a “Sustainable Cost Restructuring” project which quickly identifies & quantifies potential cost savings while building a sustainable plan which results not only to a more profitable operation but also a healthy organization capable of continuous improvement.
The Sustainable Cost Restructuring project is broken down into 4 phases:
- Assessment:
- Complete assessment of operations & cost structure
- Identification of main cost driver & quantification of potential cost savings
- Cost Reduction:
- Immediate elimination of unnecessary wastes
- Rapid implementation of improvements with fast returns
- Process Re-Engineering:
- Definition of improved processes including roles & responsibilities & new designed organization structure
- Definition of key performance indicators and detailed implementation plan
- Continuous Improvement:
- Staff trained on new processes and on Lean tools & methods
- Control room with key performance indicators implemented and regular monitoring through reports established
The Sustainable Cost Restructuring project can be applied in any kind of industry and all types of organizations with proven record of successful implementation and significant returns.
For more information please contact us now!