Driving Down Costs

Driving Down Costs

DelegatesFinance and business managers with responsibility for day-to-day cost management and for leading transformative cost savings programmes. Learning ObjectivesFinance managers are often the controllers of daily operational spending, helping to set the cost-conscious tone of the business. Ever increasing economic and competitive pressures on businesses trigger a strategic challenge to existing business models and finance is often the natural leader of cost structure reviews and transformations. This programme will provide finance managers and their business colleagues with a take-away of practical frameworks and supporting tools to help take out unnecessary cost and keep it out. The day will include identification of real-life barriers and frustrations for finance managers trying to better lead on costs and how to overcome them. Delegates will be able to interact with cases, surveys and discussion to share their experience and learning. Management tools such as & activity-based costing , & zero-based budgeting , and & lean management are enjoying a renaissance as tools to support a rigorous approach to cost and the programme will also provide the latest thinking on these tools.Course ContentIntroduction and the importance of driving down costsIntroduction and the challenge to business to hold down and cut costsFeatures of ongoing cost management and typical short-term cost saving exercisesFeatures of successful, value adding, cost savings initiatives and the need for a leadership approach to & take cost out Review of cost saving programmes in selected commercial organisationsLeading a cost transformation - to take cost outAn approach to leading a cost transformation based & change initiative: & seeing, wanting, allowing, targeting Setting an appropriate target and measuring savings successIntroduction to leading models on cost management, such as CGMA & cost transformation model , and PwC & fit for growth frameworkRe-basing the business using & zero based budgets style approachHolding back cost whilst growingAnalysis of risk and costs in typical business growth initiatives and the use of project board disciplinesHolding back cost in new product development and manufacturing process designThe benefits of excellence in working capital and asset management Identifying wasted cost in commercial functionsIdentifying wasted cost through product and customer portfolio optimization and better targeting of marketing spendApplying understanding of cost drivers and cost allocation methods, such as & activity-based costing Introducing the latest marketing spend analytics modelsCost transformation in finance and & support functionsPutting our & own house in order, providing a model of excellence to the businessApplying & lean management techniques to a support functionCentralisation, process standardisation, digital automation and outsourcing to save costs, including some of the pitfallsBuilding a sustainable cost-conscious culture & to keep cost outThe features of a continually improving cost conscious culture to & keep cost out Review of tensions between finance functions and the business in cost management identifying how finance, as a value adding business partner, can overcome negative perceptions when managing costConclusionPulling together the role of finance in leading the business through a cost transformationNext Steps Action Planning