Why Cost Reduction Programs Fail: What the 14% Do Differently

Why Cost Reduction Programs Fail: What the 14% Do Differently

  • Why Cost Reduction Programs Fail: What the 14% Do Differently

    Most cost programs don’t fail because of bad strategy. They fail because nobody runs the plan every week once the announcement is made. Deloitte’s 2026 Enterprise Cost Transformation Survey shows this at the largest scale. It’s even more true in a mid-sized company, where nobody has follow-through as their only job.

    Deloitte surveyed 500 C-suite executives at organizations with more than $5 billion in revenue. These companies have transformation offices, restructuring reserves and outside advisors on retainer. Even so:

    • 96% are pursuing a cost transformation right now, and 59% are targeting a reduction of 10% or more.
    • 67% expect to hit their targets.
    • 14% actually achieved their primary cost reduction goal last year.
    • 24% account for value leakage, the savings that disappear between the plan and the result.

    Deloitte summed it up in six words: “Strategy is clear, but speed is not.” (more…)

  • Podcast: Jim Gitney and Heidi Schalk: Why 80% of Strategies Fail: Jim Gitney on Strategy Execution, Growth and AI

    Listen: Business Growth Spotlight, Episode 249, on Apple Podcasts

    Most strategies don’t fail on paper. They fail in strategy execution. In this episode of the Business Growth Spotlight, host Heidi Schalk talks with Jim Gitney, founder and CEO of Group50® Consulting. They discuss why about 80% of businesses never realize the benefits of their own strategy, why companies stall right when they should accelerate, and how AI is changing what it takes to keep a strategy alive. (more…)

Search

Subscribe To Group50 Blog

Call us: +1 (626) 644-9746
Quick Contact
error

Please share if you liked this article