Every company in the world contends with two main issues…
How to maximise revenue and keep expenditure low, all the while maintaining service or product quality.
With the turbulent events of the last year, where many organisations lost their main revenue stream overnight, keeping expenditure low became even more important. 2020 Gartner research indicates that “96% of finance leaders took cost reduction measures by June”. Furthermore, over 828,000 jobs were lost in the UK, with an additional 9.9 million placed on the government furlough scheme.
While these tactical, short-term cost cutting actions were necessary to stay afloat, these measures are not sustainable for prolonged business operation and growth – especially with still so many unknowns around what a post-Covid “new normal” will look like. As organisations look to recover, they should instead consider implementing more overarching strategies to optimise, rather than simply reduce, costs. Delivering these changes in a way that allows them to stay flexible and adapt to the everchanging circumstances will also be vital.
At BJSS, from our experience supporting clients, we believe there are three approaches organisations can take to optimise costs sustainably. Details of these approaches are outlined at a high-level in this article. Further insights, including practical steps organisations can follow, can be found in our white paper Don’t Just Survive, Thrive: Optimising Costs to Perform During Uncertainty.