Why is Profit Improvement and Cost Reduction important?

For many commercial organisations, profit is the main measure of success.  The drive for improved profit is therefore one of the most potent forces in such organisations.

But all forces need to be directed and some thought is needed to differentiate revenue or turnover from profit and to focus this dynamism is the appropriate areas to achieve the expected results.

In a recent survey, 84% of businesses cited cost reduction as a major corporate objective.

This problem is compounded by the fact that many organisations do not know what their costs are and therefore struggle to find where the savings can be made without increasing costs in other areas.

How we can help?

We have worked with organisations on the five principle ways in which profit in an business can be grown.  Using this template, we determine the optimal ways of improving profit and work with the organisation to achieve the targets that are set.  We can also help by identifying where costs may be reduced and determining the effects of change so that effective cost reduction becomes possible.
Depending on the organisational requirements we can sometimes also link in process improvement work and also performance management disciplines to address the profit issue from the appropriate perspectives.