ISG Rapid Cost Out ProgramLeaders under budget pressure must find smart ways to get lean, drive operational efficiency and manage risks.
Keep your organization resilient through crisis.
Optimizing costs helps.
A rapid scan to identify and triage opportunities for cost takeout in your operations includes:
- A cost benchmark, spend analysis, automation viability testing and value leakage determination that will produce a heat map of immediate opportunities, spotlight quick hits and assure immediate results.
Cost optimization allows organizations to:
- Re-invest savings in new digitally enabled business models for improved cost, customer experience and operational excellence.
- Fix root causes in your company culture and governance structure that lead to or intensify unproductive costs.
- Increase momentum through change management to drive productivity and entrepreneurship internally, and sustain healthy relationships in your partner ecosystem.
Immediately assessing these critical areas and taking action will drive the results needed to weather the current climate and position your enterprise for short and long-term success.
The Savings Opportunities are Everywhere
Many variable expenses can be reduced immediately. Find discretionary or variable costs and consider how you might ramp services down to a minimum. These include energy use, travel and entertainment, usage-based maintenance, office supplies and projects that require temporary labor.
Six Steps for Guaranteed Cost Takeout
- Mobilize your team and engage ISG to conduct a rapid spend review.
- Align focus and priorities with your enterprise strategy and kick start cost takeout initiative.
- Review ISG produced heat map and prioritize immediate action with a focus on time horizon and impact.
- Pair up your leadership with ISG subject matter experts to quickly validate feasibility of cost levers from ISG Knowledge Base.
- Launch quick-hit opportunities immediately. Look at third-party agreements, software licenses and network resiliency. Harvest identified value leakage. Consider a longer-term relationship or adoption of a new technology, such as moving an application to the cloud.
- Prioritize identified opportunities in a cost takeout roadmap. Find ways to start working on things now that can have a six-month or longer time to deliver value.
Sustain Momentum and Prepare for the Future
Measure and celebrate progress where possible and embrace the need and opportunity to drive leaner and smarter operating models. What you do now prepares you for the future – whether those times require cost optimization or operational growth.
ISG’s Rapid Cost Out Program Can Help You
- Deploy effective and mindful operational cost takeout.
- Redesign your cost structure to position your organization for fast recovery.
- Create governance and effect cultural change to ensure speed and sustainability.