In this short video from Andrew Hone’s company identifies why only one in 25 cost-cutting programs work.
The video can also be accessed on Zenithstrategy.com
Umbrex is pleased to welcome Christian Hager with Christian Hager Consulting. Christian Hager was a management advisor at McKinsey & Company from 2000 to 2010. In 2010 he started his own consulting practice. Christian focuses on growth topics, incl. strategy, business model development, sales initiatives, M&A, PMI, etc. and selectively supports restructuring and cost reduction projects. He serves clients in a broad range of industries, recently focusing on travel, logistics, insurance, and eCommerce. He lives in Zurich, Switzerland
Andrew Hone’s company provides a comprehensive report designed to position your business for success in the post Covid-19 environment.
Achieving rapid and sustainable cost reduction is a critical business objective, especially in the current environment. The near-term economic outlook is bleak, with the IMF projecting the world’s worst economic downturn since the Great Depression of the 1930s.
At a time when most businesses are likely to see deteriorating market conditions and declining revenue, rebalancing the cost base to reflect the new operating environment could be the difference between riding out the current crisis or becoming another business casualty.
The Agile Cost Advantage is the culmination of 20 years’ of working with business leaders on cost reduction.
Areas covered in this report include:
- A systematic four-stage approach to designing and executing a cost reduction program
- Common causes of failure (and how to avoid them)
- Techniques for identifying cost reduction opportunities
- How to set your program up for success
Download the full report, The Agile Cost Advantage, on the Zenith Strategy website.
Andrew Hone’s company blog explains why cost reduction programs often fail.
Although cost reduction programs can deliver a powerful mix of financial, strategic, and organisational benefits, the failure rates of these types of programs are very high. A recent survey of C-Suite executives, for example, found that while 90% of businesses had attempted to implement a cost reduction program, 75% failed to meet their targets, and 44% missed them by more than half.
Drawing on some of the key insights from our new report, the Agile Cost Advantage, in this article we consider some of the main reasons why cost reduction programs are so difficult to get right.
The reasons for cost reduction program failure can be complex, and of course depend of the specific circumstances of each cost reduction program. In general though, we see a number of recurring themes behind these causes of failure.
Points covered in this article include:
- Unrealistic targets
- Cost cuts
- Execution challenges
- Loss of momentum
Read the full article, Why do cost reduction programs fail so often? on the Zenith Strategy Associates website.
Umbrex is pleased to welcome Andrew Hone with Zenith Strategy Associates. Andrew Hone spent three years as a Principal in the Strategy and Private equity practices at Bain & Company. Prior to Bain, he was a Partner at L.E.K. Consulting, where he specialised in corporate strategy and private equity advisory services. For the last eight years he has been running his own consulting firm and operates across ANZ and the UK. He focuses on strategy development, performance improvement and transaction services.
Andrew is based in Sydney with his wife and two children and is a keen golfer. Andrew is happy to collaborate on projects across ANZ and the UK involving strategy development and implementation, cost reduction and performance improvement.
Umbrex is pleased to welcome Zac Peake with Constratego Ltd. Zac Peake has broad consulting and corporate experience, with work that spans strategy development, growth planning, performance improvement, cost reduction, organisation design, and transformation / change for a mix of consumer and retail, financial services, and private equity clients.
Zac has worked at Booz & Company (Consumer and Retail practice), The Parthenon Group (commercial due diligence) as well as independent consulting. Zac’s previous corporate work includes roles as strategy director at Mitchells & Butlers and marketing / growth director at PE backed A-Plan Insurance.
Zac lives in Cambridgeshire, UK. In his free time Zac plays board and card games, listens to audio books and podcasts, snowboards, and strives to occasionally produce a half decent watercolour painting.