Leveraging ROI

Profit is a business owners reward.                                                  All key stakeholders have a vested interest in ROI

  • Owners through increased cashflow, profit & resale value
  • Clients through perception of ‘value’ & positive customer experience
  • Staff through skills, learning, experience & references
  • Suppliers through greater confidence in future demand & payment

Highest ROI comes from a Cost Management Specialists investment when:

  • customers question price/service/quality/customer experience
  • constraints to throughput leaves customers waiting
  • staff confidence in change management is framed by past failures
  • pricing & costing needs review against competitive benchmarks
  • products/services need to be understood by volume & margin
  • customer profitability is unclear & needs analysis
  • digital opportunity is not understood & risks are not managed
  • IT focus is continuity not strategic or cross functional
  • total expenditure is $15m+/annum
  • staff expenditure is a 60%+ of total expenditure

As a learning organisation, Cost Management Specialists transitioned from ‘manufacturers of profit’ to focus on ValueROI & Profit pathways by learning:

  1. Cost management is strategic. Any fool can reduce cost creating a ‘solution’ worse than the initial presenting problem. 
  2. Staff engagement is vital to sustainable cost management and profit improvement in an increasingly competitive economy.
  3. Price/unit is only part of the cost management equation. Demand, quantity, cashflow, inventory, waste/error/variance, market testing & logistics are equally significant considerations.
  4. Workforce Planning & Labour Management must be under ongoing review (Insource/Outsource/OffShore/Casualisation) with automation, robotics & artificial intelligence options.
  5. Labour as a % of total expenditure is forecast to be less in a digital business model than in a historical business model.
  6. Business intelligence can guide productivity improvements. 
  7. Internationally proven business improvement techniques take a value stream approach e.g. systems thinking, constraints, lean/six sigma, process excellence, digital transformation
  8. Digital transformation can deliver a better experience to a broader market anytime, anywhere often at greater margin using automated business intelligence facilitating consumers choice.
  9. The Internet of Things drives increased competition from international suppliers in local markets using economies of scale by removing physical & non physical constraints

Our Leveraging ROI projects facilitate stakeholder engagement & cross-functional collaboration, embrace diverse views & identify sustainable cost management solutions.

Leveraging ROI projects make ‘the whole’ greater than ‘the sum of the parts’ whether ‘whole of enterprise’ or a value stream process. 

Leveraging ROI Projects Teams make strategy operational through pursuit of specific, measurable & timely outcomes. Team members ‘buy in’ to a performance improvement culture by developing their continuous improvement mindset & capability.

Click on the process map to clarify the ongoing benefits of a Leveraging ROI Project – Value, ROI, Profit & Sustainability.

Act now. Increase your cashflow, profit & banked $s. 

Contact Cost Management Specialist on +61 411 522 521 or roi1@costms.com.au.

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