Build a cost efficiency strategy that drives growth and value
In uncertain times, take bold steps to build resilience.
Make cost efficiency your business
Defining cost efficiency is straightforward. It’s the ability to maximize profit while minimizing expenditures – and it’s a key component of productivity.
What’s more challenging: identifying strategies to reshape cost efficiency throughout the enterprise.
Today’s geopolitical uncertainty, inflationary pressures, energy volatility, and supply chain disruptions are fueling uncertainty and risk. In this environment, CFOs have a chance to step up as change leaders – and take bold steps to build resilience and agility with a balanced focus.
KPMG helps you take a holistic approach to your cost efficiency strategy, as you assess which people, process, and technology optimization levers to pull while addressing governance, controls, and reporting.
Overcome common cost efficiency challenges
Which cost efficiency mindset does your organization struggle with the most ?
What is your greatest concern with implementing a cost efficiency program?
Six strategies for effective cost takeout
Support a leaner, more sustainable and cost efficient enterprise – without sacrificing capabilities.
Here’s where to focus:
1
Real understanding of the business
Ensure leadership is aligned with the state of the business, with proper planning to prepare for and respond to future uncertainties.
2
Clarity and knowledge
Have in-depth knowledge to identify root causes to gain good, clear visibility for realizing cost savings.
3
Clear leadership and communication
Drive the tone and commitment throughout the organization to build buy-in and momentum.
4
Behavior change
Focus on a cultural reset by embedding new ways of thinking and working into day-to-day behaviors. Doing so helps align control around costs.
5
Fresh thinking
Having a growth mindset across the organization enables bold thinking and holistic decision making.
6
Rigorous implementation
Set up project management and key performance indicators (KPIs) to have strict controls of the program.
The six strategies work best with alignment – and effective communication – across functions and business units.
Future-focused operating model
As you prepare for an economic downturn, work to expand oversight by analyzing cost structures, designing cost-efficient programs, and quantifying the level of effort.
The KPMG Target Operating Model (TOM) can help. It combines leading technology and outcome-driven transformation to enhance the value of the finance function across an enterprise. With a comprehensive, future-focused approach, KPMG’s model emphasizes business goals and quick wins, which in turn helps drive cost efficiency.
Unlike other models, ours covers six layers of the finance function. It yields a more complete view that includes:
| Governance | People | Functional process | Technology | Performance insights and data | Service delivery model |
|---|---|---|---|---|---|
| Risk and internal controls for every process | Span of control, job definitions, skills mix, and skills prioritization | Process re-design and standardization | Integrations and automation | Standardizing KPIs and reporting | Optimizing offshoring/outsourcing models |
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