Mixed Results in Cost Management

April 19, 2010  |   Posted by :  

Downward pressure on prices, intensifying competition, pressure from shareholders and the need to find cash to fund growth are drivers leading most companies to create a cost aware culture.

Many companies have adopted cost improvement as part of their standard operations, however, their current activities may not be robust enough to face the challenges of a slowdown.

Most companies try to save 2% of sales annually – and don’t succeed!

9 out of 10 cost management (reduction) programs fail to achieve their targets.  Only 59% of cost saving measures are successful.

Most cost improvement programs lack one or more of the critical ingredients for success

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