SCCO International Research // Volume 39
The authors: Stefan Heppelmann, Dimitri Belobokov, Konstantin Wrona
The agenda for senior executives has changed drastically within the last year. Realizing growth just by adding more business to the investment portfolio is not the only driver for value creation any more. More and more companies are planning or have already started comprehensive cost savings programs – a true venture for most enterprises. The sheer enormity of the current crisis offers the chance to an active management team to unlock enormous efficiency reserves slumbering in the organization. In reality, however, most programs look like defensive acts of desperation rather than targeted efficiency improvements. Applying the undiffer en tiated motto “10% improvements are always possible” leads to undifferentiated cross-the-board cost cutting. Even worse, it endangers the com pany’s substance.
So far reality and bad news – good news are that these programs are nothing to be frightened about if some principles are followed. Sustainable results and long-term success is based on three principles:
1. Start from processes instead of cost centers and headcounts
2. Attack structural causes of inefficiencies
3. Control effects of single measures intensively and keep up pressure until effects
have materialized in the P&L statement
