Recent PwC research showed that two thirds of businesses plan to cut costs over the next 12 months. However, less than 30% of cost cutting programmes hit their targets, and less than a fifth of these can demonstrate sustained benefits over three years.
How can you achieve sustainable efficiencies in your operations which take cost out of the business, without hurting the customer experience or the organisation’s ability to innovate and grow?
One way is to let your data tell the story of where processes can be tightened up, errors eliminated and external spending reduced. Sometimes it is only through building a complete picture of operational activities, and a detailed picture of costs, that the business can spot the patterns that indicate wasteful or inefficient processes.
However, uncovering inefficiency is only the first step. If change is going to stick and cost savings sustained, the new way of working must be viable and properly adopted by the organisation. Can analytics play a role in planning future operations, as well as measuring the past?
In our experience, it can. The right data – and right performance measures – delivered to the right people at the right time can underpin dramatic sustained improvements in team productivity, if the team is incentivised to act on them. Process optimisation and simulation tools are also becoming more mainstream, enabling organisations to predict outcomes from operating changes and choose the most efficient option.
Using analytics to lead operating efficiency and cost reduction efforts is rapidly proving its value in achieving – and then sustaining – improvements to the bottom line.