Cost Takeout has been heard at one time or another in every C-Suite and boardroom. The primary objective of every leadership team is to take out cost. We live in a world where everything can be done at lower cost. With that in mind, how does a leadership team develop a cost takeout strategy? The first thing is to make sure everyone is clear on what a cost takeout strategy really is. Let’s start with what it isn’t.
It is not: Continue reading Cost Takeout as a Strategy
Every company is faced with some type of restructuring activity during its history. The restructuring process is painful and often unsuccessful. There are two basic types of restructuring: financial and operational. Financial restructurings are often a result of poor operational performance and the reality that the management team has not responded quickly enough to changing business dynamics. In this case, a wall to wall cost takeout is called for. Often, the need to restructure is a gut reaction by senior management in response to perceived weaknesses in the business. This article focuses on operational restructuring and the process for planning and successfully implementing it.
Continue reading Business Restructuring : Operational and Financial
For most of us, 2015 has been one of those years where business leaders were continuously faced with new obstacles to progress. Tepid demand, a strengthening dollar (+13%), the first interest rate increase in 8 years, a slowdown in China’s growth rate (-30% to – 50%, depending on who you listen to), oil down (-30.5%), volatile stocks on the DOW which is down (-2.2%) for the first time since 2008, geopolitical turmoil, a decline in the manufacturing index (-14%), etc. etc. etc. 2015 should be a reality check for Continue reading The 2016 Chapter in Your Company’s History
The Group50® series on Anti-Strategy (see the series here), characterizes situations wherein talented, driven and well-intentioned employees act against their company’s best interests. Anti-Strategy often occurs when strategy is unclear or information is lacking. Is there another cause that feeds Anti-Strategy? Is it possible, to have Anti-Strategy designed into the company’s own processes or policies? Absolutely! Let’s consider how this can happen in Sales compensation systems.
Continue reading Anti-Strategy – How Sales Compensation Can Accelerate It – Part V
In today’s manufacturing world speed and focus are the driving forces behind successful businesses. In the majority of non-defense related industries, customers have a myriad of options to choose from and they are quick to make changes when their profitability suffers from a poor performing supplier. This is especially true in consumer based products where every category of product has multiple vendors located around the world. It might take a few months for a product cycle to move to a new vendor, but once the decision has been made, the cost of reentry is prohibitive on both the top and bottom line. For the vendor and its executive team, when customers are Continue reading Restructuring A Large Manufacturing And Distribution Operation