Perspective
Newsletter

If you would like to receive Perspective - our monthly newsletter – which brings you all of our latest news and views as well as interviews and opinion pieces then please follow the link below...

Read more

Firms 'must stay lean post-recession to avoid rebounding costs'

6 May 2011

Companies that have implemented cost reduction initiatives during the recession have been warned that phasing out such programmes could lead to the return of high expenditure.

Analysis from KPMG has estimated that £90 billion worth of returning and additional costs will impact on British businesses if they place their post-recession focus too exclusively on increasing top-line figures.

In many cases, this would wipe out the savings achieved as a result of recessionary belt-tightening, with short-term thinking and a lack of adequate cost control isolated as the main risks.

Martin Scott, partner for KPMG Performance & Technology, said that by contrast, organisations which adopt a sustainable approach to savings will benefit from competitive advantages and a better long-term performance.

"UK firms need to look hard at their existing business and operational models and challenge complacency if cost-cutting is to be a long-term lifestyle choice, not a crash diet," he explained.

Earlier this year, research from eyefortransport suggested that supply chain managers in the hi-tech and electronics industry feel a greater onus than ever to ensure their businesses are functioning cost-effectively.

Odgers Interim are UK leaders in Interim Management solutions for the Commercial Sector. We have offices in London, Birmingham, Leeds, Manchester, Glasgow, Aberdeen and Cardiff as well as over 50 offices globally. We are the only Interim Management providers who are part of a top tier international executive search firm. We work closely with our executive search colleagues to find candidates who can offer short term solutions with long term benefits. www.odgersinterim.com


Categories: Financial Management

Comments

No comments have yet been posted, be the first to comment by using the form below:

*
*
* CAPTCHA
*