Cost Efficiency Underpins Growth Strategy
Situation
In the aftermath of the global financial crisis, the company was facing a significant downturn in business. A growth strategy was required necessitating material improvements in operational efficiency and a major cost-reduction programme.
Task
To reduce the cost base in a sustainable manner enabling the business to restart profitable growth and continue medium to longer term investment with confidence.
Actions
- A cost-focused project was established to generate cost-saving and efficiency initiatives throughout the business
- Presentations and training tools were developed and rolled out across the organisation. These highlighted and explained the challenges faced by the business
- Suppliers who were committed to providing improved value were identified and approached
- Systems improvements were implemented so that initiatives could be evaluated, reported on, and optimised
Result
- The company was recognised as one of the lowest cost operators in its sector. This was a key factor in achieving significant and consistent growth
- The improved ways of working and increased cost efficiency that resulted from this initiative limited the requirement for headcount reduction, and was the source of considerable pride for employees
- Customer satisfaction increased
- There was much greater understanding and ownership of the cost-drivers within the business
- A meticulous approach to efficiency and cost control became embedded in the organisation, with similar programmes and initiatives run thereafter as a matter of good practice