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Companies have more than one option to address cost pressures. With end-to-end budget or headcount reduction, the impact is immediate—but the benefits don’t last. Quick cuts simply do not address underlying problems, nor do they improve the longer-term health of the company.
BCG’s holistic cost management process efficiently and effectively transforms an organization’s business, taking into consideration direct costs such as labor and materials as well as overhead costs—which in turn allows for reinvestment in future growth, stability, and strategy. The result is effective cost optimization that boosts performance and margins while simultaneously unlocking total shareholder value.
Why Is Cost Management Important Now?
Inflation, market uncertainty, and rising interest rates are all putting pressure on organizations. At the same time, organizations need to be investing in talent, sustainability, and digital to remain competitive. Higher operating expenses are squeezing margins, prompting companies to look at their cost structure for answers—while continuing to fund innovation and growth.
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