In the current economic climate many companies or organizations have taken the progressive step of installing a cost reduction tsar, whose task is to take a hard look at the organization’s cost base and identify / implement measures to achieve a target set by management.
This is the correct approach. Our experience shows that a manager who is freed from other duties and empowered to manage a cost reduction program, has a far better chance at success, than loose cost reduction targets assigned to line or function managers.
Most cost reduction tsars take the position from previous unrelated assignments, often because they are well experienced, understand the business area or are high potential managers. Most cost reduction tsars face the same set of challenges. While, they have senior management support, a clear assignment, a target, and a time frame, they usually face the significant challenge of defining a complete cost reduction program from scratch, and often without any prior experience in this area.
They must define a team, an organization structure, understand the underlying cost situation, find measures, assign responsibilities, communicate with staff and management, and navigate politics, set ground rules, targets, and measurements before even starting the implementation.
This can take weeks or months, to organize. Time is lost, patience runs short, quick wins do not materialize and the momentum becomes inertia. Ninety-two-percent of all cost reduction programs do not achieve their targets, primarily due to these factors.
We can help – and very quickly. Within one or two weeks, we can turbo-charge your cost reduction Tsar, by implementing our QuantumLeap Framework. Our standard process becomes the cost reduction tsar’s step-by-step approach to cost reduction. It includes workshops, a roles and responsibilities concept, principles and rules, communications strategy, templates & tools necessary to identify, define and track the measures to completion, as well as best practices and measure tracking software.
Within the shortest time, your cost reduction tsar is up and running, and focused on the core challenge of reducing costs, maintaining momentum, and ensuring higher success levels, while reducing the possibility of unpleasant year-end surprises.