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<v ->When it comes to cost management,</v>

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companies need to take

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both a short-term and a long-term view.

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They should ask how they can save on cost

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while still protecting long-term growth.

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Practically, that means addressing

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activities that don't add value,

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simplify processes, right-size their fixed cost.

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This requires trade-offs, a clear view on priorities,

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and the ability to cut

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where it doesn't hurt while investing in strategic areas.

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Take the automotive industry, for example,

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where important investment like automation

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and EV are essential for staying competitive.

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To continue investing in these areas,

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OEMs must identify more efficient processes

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and leverage on new ways of working

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and digital tools to gain efficiency

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in parts of the business.

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For leaders, the main question becomes:

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How do we implement cost-saving measures,

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making sure they hit the bottom line?

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The first step is to set clear targets.

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Targets should be ambitious,

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but realistic, broken down by function,

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and underpinned by actionable cost-reduction levers.

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The second is to build a clear narrative

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for getting management and employees engaged

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and invested in the vision.

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With clear targets and employee buy-in,

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companies must remain focused on systematic execution,

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encouraging strong collaboration across functions

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to get the highest impact.

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(upbeat music)