Our assessment of your cost reduction targets uses our experience of delivering significant cost reduction programmes to provide you with a second opinion on the critical savings targets that you have established as part of your cost reduction or transformation plans.
With the changing economic conditions for the Housing Sector, the viability of organisation’s business plans and financial forecasts need rigorous testing. However what many don’t know is that on average companies are achieving less than 60% of expected savings and just 8% reach or exceed their targets.
A survey we completed with our Partners RSM indicated that:
- 70% of Finance Directors are planning to reduce costs
- 50% of Finance Directors said that they had experienced similar cost reduction programmes
- 45% are planning to use external advisors to help train and support staff in cost reduction
- The biggest motivators were protecting margins and pressure from the board
- Over 80% of RPs were aiming for an efficiency increase of more than 5%
- Over 30% of RPs were aiming for an efficiency increase of more than 20%
Some key questions include:
- Can we genuinely link our business plan savings targets to our actual performance measures and decision making on the ground?
- Are the areas that we have targeted for cost reduction true ‘cost savings’? If not, what happens if another wave of financial challenges comes our way?
- Are we actually being ambitious enough in establishing our cost reduction targets?
What will you get?
- High level review of your current savings targets; focusing on the key areas of expenditure
- An assessment of how ambitious or otherwise those targets are based on your current performance levels and what we have achieved with other RPs within the sector and organisations outside of the sector
- An assessment of the approach that you have taken in establishing your targets including buy-in, accountability and approach to target setting
- Assessment of whether you have true value based KPIs which link to cash
What do you need to do?
- Attend some interviews
- Collate and send us your existing financial reports and cost schedules
- Attend a feedback workshop