Cost Transformation: can we learn from the UK Government’s approach?

It was interesting to see BBC News report that parliament’s Public Administration Committee has reported that a lack of strategic thinking is leading to a “patch and mend” approach to policy-making.

Putting the politics to one side and given that the Government’s main task in this parliament is to reduce the deficit, there are strong parallels between their approach and any company’s cost management activities. There are times when only a systemic view of a company’s problems will produce effective results. The Government has chosen to mostly manage their cost transformation through departmental initiatives and are perhaps missing the synergy opportunities from looking at “UK Government PLC” as a whole.

Auditel consultants are often approached by FDs driven by a single operational problem or large invoice to “sort out” the costs and general management of a particular overhead cost category. We’re happy to help, of course, and it is the right thing to do if a company just needs to tweak it’s overall performance.

We’re also happy to review all of a businesses’ overhead costs as part of our Business Health Check service, which will quickly reveal which areas are under control and which areas require attention.

For companies who are considering embarking on a full cost transformation programme, our mix of industry experts and Total Cost of Purchase methodology can become a key part of your full review of your company’s organisation, processes and supply chain strategy, ensuring all of your costs are considered together.

So whether you have one nagging area of cost that you really must sort out, or wish to discuss how Auditel consultants can enhance your Cost Transformation team, contact me.