A near-universal impact of COVID-19 is profitability loss. By necessity, companies are looking at different ways to maintain some level of profitability. Cost reduction of non-working dollars will likely be among the first things examined. While there are many cost drivers to target, general and administrative costs – G&A – is on most everyone’s target list.
Over the last decade, G&A functions such as IT, finance, procurement, HR, legal, and facilities, have made digital investments to become more efficient. However, COVID-19 has put greater pressure on functional efforts to further reduce costs.
KPMG Principal, Jeff King, has spent his career helping corporate support functions run better. He shares some of the more thoughtful ways that G&A costs are being managed by progressive companies.
Topics addressed include:
- the surprising fact that despite digital investments, such as AI, automation, and analytics, G&A costs have been growing faster than revenue
- G&A costs often vary substantially between industry competitors
- lessons function leaders can learn to avoid the unfavorable, unintentional outcomes of past cost reduction efforts
- specific tools and benchmarks available to get a clear view of G&A performance
- why COVID-19 provides an opportunity to combine both traditional and digital approaches to truly redesign work while rapidly reducing costs.