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Fast effective relief from costs
The Need
When margins are being squeezed, businesses typically need to ‘tighten their belts’. Many use a “slash and burn” approach to reduce costs. This method inevitably demotivates staff, undermines quality, and negatively impacts customers and sales. So, how do businesses quickly find cost reduction opportunities and turn them into “hard dollars” without sacrificing quality and revenue?
Cost Blitz is a systematic process that provides fast, effective cost relief, without layoffs. This proven process engages employees in analysing work processes, identifying potential cost savings and taking action to create tangible bottom-line results. At the same time, it develops practical know-how to continuously dig out and attack unnecessary costs.
Process Format
Based on solid research and extensive experience, Cost Blitz is a practical approach to reducing costs through employee engagement. There are three steps to success:
Step 1 (Ready): Planning and preparation
Step 2 (Set): One day facilitated workshop
Step 3 (Go): Cost reduction implementation
Participants are given access to an internet based support site immediately after the workshop to support the cost reduction process.
Workshop Content
The one day workshop includes the following:
- The ROA Model of financial productivity.
- The real meaning of cost reduction.
- Key financial responsibilities of every employee.
- The SIPOC Model and customer value.
- Process efficiency -v- effectiveness.
- High-level process mapping.
- Effect of process failure costs on the business.
- The rebound effect and the iceberg of hidden costs.
- Methods of uncovering and identifying unnecessary costs.
- Use of Variance Analysis to identify problems areas.
- Variance Matrix Analysis (to reveal upstream influences).
- Linking process variances to financial results.
- Prioritisation of cost reduction opportunities.
- Strategies for blitzing avoidable costs.
- Customer impact risk assessment.
- Turning the Action Wheel to ensure success.
- Rigorous cost reduction action planning.
Cost Blitz Coaching
A consultant can assist in guiding and expediting the cost reduction initiatives.
Expected Benefits
Cost Blitz produces a range of benefits including:
- Greater employee engagement in managing costs.
- Identification of inefficient or unnecessary use of resources.
- Elimination of non-value-added activities.
- Increased process efficiency and cost-effectiveness.
- Reduction in costs and less pressure on profit margins.
- Development of business acumen and continuous improvement skills.
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