Strategic Cost Reduction (2nd Edition)

This book is also available as an Amazon Kindle eBook.

Aimed at managers, and their advisors, embarking on major cost reduction programmes, it outlines the key tools available for, and potential pitfalls in, implementing sustainable change. For many businesses, at some point in their lifecycle reducing costs will be vital for their 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, Chair, 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 2nd, 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.

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

1. Budgeting Challenges
2. Effective control
3. The role of the functions in traditional cost reduction
4. Is there a problem with current performance?
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

6. Preliminary strategic considerations
7. Critical functional considerations
8. Discovering the strategic drivers of cost
9. Exploiting the value chain
10. Deciding on size

Part III – Using modern operational aids to analyse and manage costs, providing a path to ‘leanness’ and continuous improvement

11. World class and lean manufacturing
12. Radical Improvement
13. Business process re-engineering
14. Benchmarking
15. Outsourcing

For further information contact publishing@charteredaccountants.ie or telephone on (+353) 01 637 7204

The Authors

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 a Programme Director at the Irish Management Institute, specialising in enterprise development and business strategy. He is also Strategic Company Module Coordinator for the MBA at Trinity College, Dublin, a business advisor coach for Enterprise Ireland and a programme programme leader for the University of Nottingham. He also teaches on the Henley MBA and on the University College Cork M.Sc. in Management Practice. He holds a B.E. from University College Dublin, an M.Sc. (Mngt) from TCD and a Diploma in Executive Coaching from UCC. He is also author of Managing Professionals and Other Smart People (Chartered Accountants Ireland, 2014).