Not surprisingly, cost reduction programs cause significant angst within organisations. The uncertainty and ongoing distraction can cause an organisation to “seize-up” as it works through options and deploys changes that directly, and personally impact on individuals.
Critical to mitigating these negative impacts is the approach to introducing the program to the business and the early phases of program launch. Experience shows that a clear story backed by evidence, that is communicated by senior management, creates a strong platform for a change program.
Creating the right team to drive change is also essential. Using a blend of external and internal resources ensures knowledge of the business and buy-in is received, whilst maintaining objectivity and commerciality.
This article provides an introduction to some of the considerations in implementing a cost reduction program.