Methodology
Find the Hidden Profit
There is hidden profit in every business. Cost Management Specialists know where to find it. We focus on revenue and client value to achieve a multiplier effect between:
- Strategy - what is the business goal and is this clear from observing day to day operations?
- People - are they motivated & capable of 'buying into' improved cost management?
- Process - is it efficient and effective or just keeping staff busy?
- Product - is what is produced & procured fit for purpose the first time every time?
Cost Management Specialists use the interrelationship between strategy, people, process and product tfocus on the management, not simply the measurement, of cost. Not just numbers, but qualitative and quantitative information for informed decisions on your cost investment.
We blend a breadth of proven tools to manufacture profit by incorporating aspects of Lean, Theory of Constraints, Six Sigma, Kaizan, De Bono, Value Chain, Fifth Discipline etc. into our approach.
Cost Management Specialists work clockwise from strategic diagnosis around the circle using relevant steps for individual clients. The steps in more detail are:
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STRATEGIC DIAGNOSIS & ANALYSIS
Objectives:
- Clarify strategic intent.
- Highlight gaps between strategy and operations.
- Identify cost management priorities.
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CLIENT PROFITABILITY IMPROVEMENT
Objectives:
- Identify value proposition and who it is highest for
- Identify relative % of profitable and unprofitable customers
- Increase % of profitable customers and their profitability
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PEOPLE/CULTURE
Objectives:
- Assess the 'cost management mindset' of staff
- Staff 'buy in' and 'ownership' of cost management initiatives
- Promote 'outcome focus' & performance measurement
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IMPROVE WORKING CAPITAL
Objective: Reduce debtor days and manage inventory
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WASTE & PROCESS EFFICIENCY
Objectives:
- Identify inefficiency and waste drivers
- Identify targets for re-rengineering
- Eliminate waste
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SUPPLY MARKET - BEST VALUE
Objectives:
- Identify 20% of contracts involving 80% of expenditure
- Identify scope for added value in these contracts
- Tender: Service, Quality, Price, Information, Integration, FIT
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HIDDEN PROFIT PRIORITIES
Objective: Highest yield (Profitability and Sustainability)
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MEASURE, REVIEW AND REFINE
Objective: Continuous cost management improvement
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