In today’s highly competitive market place, a solid cost position is the benchmark of a high performing organisation. Cost initiatives, and cost reduction programmes, though often brilliantly project-managed, tend to remove cost on a one-off basis. Sustainable results are harder to come by, as cost is inclined to creep back into the system, unless issues are dealt with at source.

According to KPMG, a 2007 survey of more than 400 companies worldwide showed that 9 out of 10 cost reduction programmes fail to achieve their targets, and gains that are achieved are typically short lived.

In our experience, the big 'cost wins' are either avoided, or become problematic to implement, because they require a deeper level of cross-functional cooperation than currently exists. Also, although the will to simplify costly processes is usually available, and the change management experience is at hand, the tools for doing so collectively and the leadership capability to make this kind of ‘cut-through’ collaboration happen is often lacking.

Our wide experience of supporting ‘change of mindset’ processes, enables us to work well in support of cost optimisation initiatives. Typically, this might involve:

• Working with senior leaders and their extended leadership team to integrate ‘cost discipline’ into the culture of the organisation – measuring progress visibly
  
  
• Facilitating leader-led learning forums for those leading on cost throughout the business
  
  
• Supporting ‘on-the-ground’, cost-focused work through 'following the trail' of poor, costly processes and helping people take responsibility for changing them sustainably (e.g. surfacing issues relating to cross-functional working, and devising interventions that support more aligned, 'one team' working)
  
  
• Building leadership capability e.g. 'tough conversation' skilling to support hard, cost-focused conversations with teams and direct reports, or change management sklling to support leaders in catalysing behavioural change