Build a cost efficiency strategy that drives growth and value

Defining cost efficiency is straightforward. It’s the ability to maximize profit while minimizing expenditures – and it’s a key component of productivity.

What’s more challenging: identifying strategies to reshape cost efficiency throughout the enterprise.

Today’s geopolitical uncertainty, inflationary pressures, energy volatility, and supply chain disruptions are fueling uncertainty and risk. In this environment, CFOs have a chance to step up as change leaders – and take bold steps to build resilience and agility with a balanced focus.

KPMG helps you take a holistic approach to your cost efficiency strategy, as you assess which people, process, and technology optimization levers to pull while addressing governance, controls, and reporting.

Overcome common cost efficiency challenges

In a KPMG cost efficiency webcast survey CFOs and other finance leaders identified some of their most persistent concerns and challenges.

Which cost efficiency mindset does your organization struggle with the most ?

What is your greatest concern with implementing a cost efficiency program?

Six strategies for effective cost takeout

Support a leaner, more sustainable and cost efficient enterprise – without sacrificing capabilities.

Here’s where to focus:

Real understanding of the business

Ensure leadership is aligned with the state of the business, with proper planning to prepare for and respond to future uncertainties.

Clarity and knowledge

Have in-depth knowledge to identify root causes to gain good, clear visibility for realizing cost savings.

Clear leadership and communication

Drive the tone and commitment throughout the organization to build buy-in and momentum.

Behavior change

Focus on a cultural reset by embedding new ways of thinking and working into day-to-day behaviors. Doing so helps align control around costs.

Fresh thinking

Having a growth mindset across the organization enables bold thinking and holistic decision making.

Rigorous implementation

Set up project management and key performance indicators (KPIs) to have strict controls of the program.

The six strategies work best with alignment – and effective communication – across functions and business units.

As you prepare for an economic downturn, work to expand oversight by analyzing cost structures, designing cost-efficient programs, and quantifying the level of effort.

The KPMG Target Operating Model (TOM) can help. It combines leading technology and outcome-driven transformation to enhance the value of the finance function across an enterprise. With a comprehensive, future-focused approach, KPMG’s model emphasizes business goals and quick wins, which in turn helps drive cost efficiency.

Unlike other models, ours covers six layers of the finance function. It yields a more complete view that includes:

Governance	People	Functional process	Technology	Performance insights and data	Service delivery model
Risk and internal controls for every process	Span of control, job definitions, skills mix, and skills prioritization	Process re-design and standardization	Integrations and automation	Standardizing KPIs and reporting	Optimizing offshoring/outsourcing models