In the wake of current market challenges, cost saving is critical to the success of investment management companies. Many of these are already implementing initiatives to facilitate operational efficiencies and decrease spending.
The majority of cost savings strategies fall into three broad categories: strategic, tactical, and crisis Management. Some examples of what these can encompass include:
Strategic (mid-to long-term)
- Outsource non-core services
- Joint ventures
- Key rationalization methods
- Strategic divestiture
- Fundamental shift in business model
Tactical (mid-to short-term)
- Discretionary spend reduction
- Outsource noncore businesses
- Eliminate business redundancies
- Operational efficiencies
- Spend management
Crisis Management (immediate)
- Stop all nonessential spend
- Rapid closure of loss-making lines/businesses
Some of the key levers to cost management include working capital management, operational efficiency, procurement and supply chain.
The main objective of Cost Management is the creation of a unified and efficient structure of business and cost management models.
Cost Management and Optimization has always been acknowledged as a way to increase profitability. Yet, the efficiency and the coherence of cost management techniques and approaches are not easily ensured in a constantly evolving economic and financial environment.
Cost efficiency is one of the key opportunities for organizations seeking to gain competitive advantage in a predominantly slow growth economy. But to achieve this, organizations need to ensure that their efforts are turned into a sustainable lifestyle change.
Cost Management and Optimization is a methodology to identify and understand cost drivers of an organization in order to get better control over key processes.
Using our Cost Management and Optimization methodology, we are able to assist clients through the process of evaluating cost performance and implementing and monitoring changes to their cost base.
LetsComply offers personalized Cost Management and Optimization services, taking your specific industry characteristics into consideration. These services include:
- Assessment of the current cost structure within the organization
- Identification of opportunities for shared service centers and in- or outsourcing General management of the Cost Management program
- Definition of cost drivers and cost ownership
- Cost discipline in the company’s culture
- Prioritization and articulation of Cost Management initiatives
- Redesigning financial activities and processes
- Transformation of the supply chain
- Redefining sourcing structure and strategy
- Minimization of administration costs and overheads
- Identification of opportunities for shared service centers and in- or outsourcing
Depending on the client’s situation and needs, Cost Management and Optimization can be applied on various levels:
- Survival (short-term stressed financial situation)
- Tactical (opportunistic response to improve performance of existing business model)
- Strategic (long-term view to generating sustainable performance and value creation)