Save to prosper - Video on cost optimization - Ernst & Young - Global

Save to prosper: from cost reduction to cost optimization

Most companies fail to sustain cost reductions after the economy begins to recover from the downturn that forced those reductions.

• In this report, we suggest that effective cost reduction should become engrained in the way companies do business. (pdf, 853.5kb)

60% of businesses fail to sustain cost reduction programs, despite evidence that sustainable cost reduction pays long-term dividends.

We have identified some of the challenges that businesses are likely to face in trying to achieve cost reductions, and we suggest strategies for overcoming those barriers – both in the near term and the long-term.

Further, we highlight some leading business innovations and elements of the green agenda that can be harnessed by companies for cost reduction, detailing how these integrate with conventional cost reduction strategies. Learn more about Ernst & Young's Climate Change and Sustainability Services.

 

Interview with Jean-Benoit Berty

Watch these discussions with Jean-Benoit Berty, Ernst & Young's Enterprise Cost Reduction global champion to explore the following questions:

 

• Why do companies need to sustain cost reductions even as the economy recovers?
• What tactical and strategic measures are companies taking to curb costs during the downturn?
• Why do companies lose their competitive cost savings advantage once the financial landscape returns to “business as usual”?
• What does a culture of cost optimization look like?

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