Making cost cuts stick

3 Jun 2010 Sandeep Mehta

According to one recent study, 90% of the organizations fail to sustain cost savings beyond two years.  McKinsey quarterly has an interesting check-list to ensure cost cuts stick:

  • Assign accountability at the right level
  • Focus on how to cut, not just how much
  • Don’t let P&L accounting data get in the way of cost reduction
  • Clearly articulate the link between cost management and strategy
  • Treat cost management as an ongoing exercise
  • All very interesting points.  I think the first two are quite relevant in an R&D environment.  However, several are very difficult to implement in R&D.  I remember an old boss talking to me about his problems predicting R&D costs.  He remarked that when he went to get his car serviced, they had a pretty good handle on what different services would cost and how long they would take.  Why could we not do the same for R&D?

    Predictability normally comes with repeatability.  Unfortunately, finding repeatability in R&D is pretty tough – as R&D always involves developing something new.  In fact, it is more developing knowledge that can be used to produce that new item.  Without repeatability and associated cost data, it becomes very difficult to understand what things should cost to develop in the first place.  How do we define how much cost to save?  As we get to more and more complex devices, this will likely become even more difficult…

    Personalised Football Shirts United Kingdom Cheap Football Shirts shop:https://www.cheapfootballshirtsvips.co.uk/ Printing
    Spoiler: Most of them https://www.cheapfootballshirtsvips.co.uk/ are big purple shirts. You’ll additionally be capable of customise your staff soccer shirts by printing issues like corporate sponsors, names, logos and more, so your team look skilled from the minute they step out the buy cheap football kits changing room. Fabricated from sturdy fabrics with ventilation in mind our soccer shirts will maintain your group wanting great game after game. Offering an athletic match for a sculpted look, the VO2 Performance Match Football Shirt is the Real Madrid Home Football Shirt 2018/2019 professional selection for striking workforce put on.
    Don’t let your video games go you Real Madrid 3rd Away Football Shirt 2018/2019 by without your custom Football t-shirts & customized shirts. Among such one is Customized Glam Woman model that present big selection of options for ladies football T-shirts, customized women football shirts and hoodies Real Madrid Away Football Shirt 2018/2019 even. SOCCER followers will have the ability to create their own customized kits at Nike Town. We now have a huge number of cheap Barcelona football shirts colors and styles with totally different materials and variations in football shirts, so take a second to seek out what most Barcelona Home Football Shirt 2018/2019 closely fits your group needs and specs.
    We create the soccer designs. The design was printed completely Barcelona Away Football Shirt 2018/2019 on our shirts. With four totally different custom football shirt options and Atlético de Madrid football shirts a full range of junior and grownup sizes, VO2 have all the things it’s worthwhile to create fantastic looking kits for every type of the beautiful sport. Our workforce can even assist with your football shirts and different Atlético de Madrid Home Football Shirt 2018/2019 custom attire with FREE design help.
    We’re happy with the amount of options you’ve at your cheap Bayern Munich football shirts disposal with our ‘design your own’ instrument, however we’re additionally dedicated to providing quality grownup football uniforms which are each snug and durable. I’ve tried factories in each Thailand Bayern Munich Home Football shirt 2018/2019 and China to manufacture sportswear, fitness clothing and soccer shirts for my on-line cheap arsenal shirt store and profitable brand.

    Leave a Reply