Your culture can make cost savings last
What's the bottom line?
Cost pressures for consumer products companies are set to continue for the foreseeable future.
Cost savings initiatives can't be successful in the long term without considering the company's culture.
Companies that take a tactical approach to cost-cutting may find success initially. However, that success is often short-lived.
A more strategic approach enables companies to be more targeted in their cost reduction efforts, investing in areas that will maximize enterprise value.
However, none of these initiatives can be successful in the long term without knowing and taking into account the company's culture.
By applying a cultural lens to decision-making and linking those decisions back to the company's business strategy, companies can help employees to remain engaged and supportive of the changes that occur.
Ultimately, applying a cultural lens to enterprise cost reduction will produce much more than sustained savings and long-term value for the company. It can free up much-needed resources to invest in growth initiatives.
And it can give investors the sustained confidence in the company's ability to achieve its strategic view of the future.