01421 final sustainable cost reduction pi nov08
TRANSCRIPT
-
8/14/2019 01421 FINAL Sustainable Cost Reduction PI Nov08
1/2
-
8/14/2019 01421 FINAL Sustainable Cost Reduction PI Nov08
2/2
Benefits Realisation
The key to successful cost reduction programmes is to focus first
and foremost on strategic priorities, linking these very closely
to operational targets and the subsequent change managementactivities. PwCs client experience highlights the importance of
designing, developing and implementing a benefits realisation plan
when implementing cost reduction initiatives. By maintaining focus
on target benefits, the opportunity to divert from pre-defined cost
reduction initiatives is limited.
How can we help?
PwCs consultants have significant commercial experience in driving
performance improvement initiatives across multiple industries. We
offer a flexible approach to cost reduction that enables clients focus
on known areas of concern or on enterprise wide operations. The
services we provide include:
Identifying cost drivers
Benchmarking performance against peer groups
Challenging cost management and control frameworkEstablishing KPIs that are aligned to corporate strategy
Simplifying and standardising business practices
Structuring shared services and outsourcing arrangements for
Finance, IT, Treasury, Logistics, Operations, etc
Adapting IT to support business needs
Embedding a culture of continuous improvement within
organisations
Example Engagement
Large Irish Food FMCG Company Cost ReductionChallenge: This company had experienced exceptional year-on-
year growth with senior management focus on acquisitions and
indigenous growth. Little focus had been placed on the efficiency
and effectiveness of internal operations. PwC was requested to
establish if opportunities existed for optimising the investment in
Finance, Administration and IT, within the groups businesses in
Ireland and the UK.
Approach:Having gained a high level understanding of the business,
PwC conducted detailed interviews with senior management in
all targeted companies. Metrics were gathered, business plans
reviewed, IT strategy interrogated and finance and administration
operations mapped and analysed. Performance was benchmarked
against best practice, whilst opportunities for centralisation and
outsourcing were assessed. We also analysed the tax structuresunderlying existing operations. A business case for change reflecting
costs and benefits was prepared.
Benefit: PwC identified cost savings in excess of 6m per annum (c.
8%). Our observations included: leveraging existing best practice
across the Group; coordinating IT implementations, leveraging
existing capability; completing a program of centralisation, which
had stalled impacting return on investment; accelerating the close
process and tailoring business intelligence to Group needs; and
leveraging group purchasing power. Two separate IT implementations
were immediately deferred and the Group generated significant cost
savings from the implementation of PwC recommendations.
Professional advice. Distinctive service.
For more information on our approach to Cost Reduction assignments,
please contact:
Ciaran KellyPartner
PricewaterhouseCoopers
One Spencer Dock
North Wall Quay
Dublin 1
T: +353 1 792 6408
Garrett CroninPartner
PricewaterhouseCoopers
One Spencer Dock
North Wall Quay
Dublin 1
T: +353 1 792 8807
PwC benefits realisation
approach
1
23
4
5
6
7
8
Agree
strategic
priorities
Setthe baseline
Define
soft/hard
benefits Agree
benefitsrealisation
strategy
Align the
organisation
Measure
benefits& performance
trackingManage
benefits-
related risk
Input to plans /
budgets
Realise
Benefits
www.pwc.com/ie/performance
2008 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to the network of memberfirms of PricewaterhouseCoopers International
Limited, each of which is a separate and independent legal entity. PricewaterhouseCoopers, One Spencer Dock, North Wall Quay, Dublin 1 is authorised by the Institute
of Chartered Accountants in Ireland to carry on investment business. Designed by PwC Design Studio (01412))