Balancing Cost Management and Customer Value (Part 1)

 


This practical workshop is aimed at helping businesses navigate financial pressures without compromising customer value, especially during economic downturns. As companies seek to reduce expenses, it's crucial to do so without diminishing service quality. This workshop offers practical strategies for efficient cost management that ensures business sustainability and customer satisfaction, focusing on innovative methods to thrive while shielding customers from rising costs.

 

Review of Organizational Infrastructure from the Cost Cutting perspective

 

-          Key areas for cost management initiatives that can be implemented by middle management:  transportation logistics, optimization of production processes, enhancement of product quality to reduce defects, and efficient inventory management.

-          Conducting a review of constraints and performing a cost-benefit analysis, with careful consideration of customer value analysis and its implications

-          Streamlining value-added processes and eliminating non-value-added activities (by focusing on negotiating with suppliers, reducing non-essential expenses, and outsourcing non-core functions)

 

Debt Management and Restructuring

-          Assessing the impact of debt restructuring on the company's financial efficiency.

-          Evaluating potential opportunities for debt management (including revision of credit terms, opportunities for conversion of debt to equity and associated advantages and disadvantages, asset sales)

-          Forecasting interest rate payments and reviewing budgets (including importance of interest rate forecasting and overview of interest rate forecasting methods)

 

Reading:

Cost Cutting That Makes You Stronger – How the most resilient companies position themselves to grow by Vinay Couto, Paul Leinwand and Sundar Subramanian

https://hbr.org/2023/07/cost-cutting-that-makes-you-stronger

This workshop outline has been suggested by AllaVolodina who teaches in university (rate my prof) and corporate settings. Alla has developed a variety of workshop outlines on a variety of topics and course outlines (at York University).  Check out: allavolodina.com

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