A NEW VIEW OF HOW COST MANAGEMENT CAN ADD TO BUSINESS SUCCESS
Cost management is critical to the business world — with companies setting expectations for revenue growth, while reducing costs to allow for it. However, research has found that in today’s global economy, businesses also recognize the need to transform their operations and capabilities — shifting from a save-to-grow to a save-to-transform mindset.
According to recent research by Deloitte, one of the world’s largest consulting firms, “businesses are recognizing the need to transform their operations and capabilities with infrastructure investments in key digital innovations such as robotic process automation, cognitive technologies, business intelligence and cloud-based ERP systems. These digital technologies and innovations can deliver dramatic improvements in competitiveness, performance, operating efficiency and, increasingly, cost savings.”
Based on Deloitte’s 2019 Global Cost Survey of more than 1,200 senior executives across all major global regions and industries, cost reduction remains a global imperative. However, what once was viewed as a “save- to-grow” mentality with cost management is now emerging as a “save-to-transform.”
What does that mean? According to Deloitte’s findings, the “save- to-transform playbook” includes investment in digital technologies and innovations that can improve every aspect of a business, from business and operating models to market reach, service quality, operating efficiency, use of talent and the overall customer experience. Such improvements can make companies more resistant to digital disruption and economic downturns by providing “a stronger foundation for defense-oriented cost management activities — activities that are sure to be needed at some point in the future.”
In this edition of the Business Magazine, we’ll take a closer look at this “save to transform” mentality and the solutions that make sense to helping employers achieve their long-term goals. For instance, we’ll talk to members who are utilizing the MBA’s EnergyAdvisors energy program to help save on their electricity costs and how that contributes to their organization’s operations and their bottom line.
And, since employers shouldn’t leave their financial future to chance, we’ll also hear from Gene Crescente of PNC about why it’s important for employers to have a clearly defined strategy in place when it comes to their business transition and/or sale plan.
In addition, be sure to check out our expert articles on Lean Six Sigma and why “It takes money to save money,” as well as our detailed look at paid time off (PTO) banks and how they can benefit your organization and your employees.
As always, the Manufacturer & Business Association is dedicated to helping employers face challenges by delivering services that lower the cost of doing business, ease the burden of compliance and increase productivity. To learn more, visit www.mbausa.org!