|
Overhead Management
Corporate headquarters, divisional offices,
field operations and local sales offices are the most discretionary
of expenditures yet the most difficult to manage from a cost control perspective.
This is because of functional uniqueness, longer-term time horizons and
the need to consider effectiveness. The challenge is to minimize expense
without impairing the strategic ability of an organization. Lasting overhead
cost reduction takes considerable experience to do well, something we
have been doing for over fifteen years.

Corporate offices: Multiple and highly
specialized functions within one complex

Sales forces, with travel expenses, normally
have a higher cost per person than any
other function |
|
Two Hallmarks To Our Approach
Fact-based analysis
Novices in overhead reduction rely upon ratios and benchmarking. We go well beyond this to create a foundational encyclopedia of how every person in a staff role invests his or her time. With this knowledge, we then use our experience to evaluate the appropriateness, the strategic value and the degree of work stretch. All of these findings are fully shared with the respective managers.
Blueprints for execution
We find that going beyond the overhead study phase to actually implementing change is a serious hurdle for many companies. This is where failures in execution materialize. We make it easy by providing a detail blueprint of what to do, why, how, when and in what sequence. Our blueprints are so prescriptive that clients average over an 80% implementation rate for our recommendations. We present our blueprints in terms of:
- Organization structure matters
- Operational changes (what to stop doing or
modify)
- Staffing level changes (both additions and
deletions)
- Supported with full rationale on a position-by-
position basis
|
|