Strategic Cost Reduction: Cutting Costs without Killing Your Business

In the teeth of global recession, reducing costs is vital for survival. In a crisis, cost reduction is a priority, and businesses may need to cut many costs to restore their health. Unfortunately, cost cutting is sometimes undertaken carelessly, and may cut a corporate artery, or is performed so persistently that it can lead to a 'death by a thousand cuts' and closure. Strategic Cost Reduction takes a holistic approach to cost reduction, placing it in a wider strategic framework. Based on the experience of leading practitioners, it outlines the key tools available for, and potential pitfalls in, implementing sustainable change. It is aimed at managers, and their advisors, embarking on major cost reduction programmes. While written from an Irish base, where cost competitiveness poses particularly severe challenges for both business and Government, its messages are global. The first edition of the book received widespread critical acclaim for its practical approach and clarity of vision. For example: "This is an excellent practical guide on a vital topic confronting most businesses." Dr Philip Nolan, Chairman, John Laing plc "Cost reduction is part and parcel of how modern companies operate. This book gives not only good advice, but also the necessary context. A very useful read." Frank O'Regan, Global Vice-President, Bausch and Lomb This second enlarged edition expands on the material included in the first edition with a greater international focus. In particular, it emphasises implementation issues and includes many more examples, including two new chapters dealing with the causes of business failure and implementing the cost-reduction plan with illustrations from financial services and the public sector.

Table of Contents:
Part I - Evaluating budgeting and other traditional approaches to cost reduction to assess the health of the business and the need for cost reduction Chapter 1 - Budgeting Challenges Chapter 2 - Effective control Chapter 3 - The role of the functions in traditional cost reduction Chapter 4 - Is there a problem with current performance? Chapter 5 - Emergency cost reduction in a cash crisis Part II - Approaching cost reduction strategically to fit the cost reduction programme into the wider framework and values Chapter 6 - Preliminary strategic considerations Chapter 7 - Critical functional considerations Chapter 8 - Discovering the strategic drivers of cost Chapter 9 - Exploiting the value chain Chapter 10 - Deciding on size Part III - Using modern operational aids to analyse and manage costs, providing a path to 'leanness' and continuous improvement Chapter 11 - World class and lean manufacturing Chapter 12 - Radical Improvement Chapter 13 - Business process re-engineering Chapter 14 - Benchmarking Chapter 15 - Outsourcing Part IV - Implementing cost reduction successfully in a strategic manner, while preserving core values and avoiding financial failure Chapter 16 - Structuring and rewarding the labour force Chapter 17 - Strategic cost reduction - the critical links Chapter 18 - The fundamental causes underlying business failure Chapter 19 - Managing the change process Chapter 20 - Planning the Journey

About the Author :
Tim McCormick has worked in the field of financial training since 1990. Prior to this, he spent 17 years in investment banking. He obtained an MBA from INSEAD in France, qualified as a Chartered Accountant with KPMG in London and graduated with a primary degree in Economics from Trinity College Dublin. Dermot Duff is Executive Learning Director at the Irish Management Institute and specialises in the strategic development of entrepreneurial organisations. Dermot was previously Transformation Manager with Digital, Engineering Manager with Alcatel in Holland, Engineering Supervisor with Storage Technology, CPT and HiTech. He began his career as an Oil Exploration Engineer in Africa & the Middle East, and holds a B.E. (Eng) from University College Dublin and a M.Sc. (Mngt) from Trinity College Dublin.