-: When it comes to cost management,
companies need to take
both a short-term and a long-term view.
They should ask how they can save on cost
while still protecting long-term growth.
Practically, that means addressing
activities that don't add value,
simplify processes, right-size their fixed cost.
This requires trade-offs, a clear view on priorities,
and the ability to cut
where it doesn't hurt while investing in strategic areas.
Take the automotive industry, for example,
where important investment like automation
and EV are essential for staying competitive.
To continue investing in these areas,
OEMs must identify more efficient processes
and leverage on new ways of working
and digital tools to gain efficiency
in parts of the business.
For leaders, the main question becomes:
How do we implement cost-saving measures,
making sure they hit the bottom line?
The first step is to set clear targets.
Targets should be ambitious,
but realistic, broken down by function,
and underpinned by actionable cost-reduction levers.
The second is to build a clear narrative
for getting management and employees engaged
and invested in the vision.
With clear targets and employee buy-in,
companies must remain focused on systematic execution,
encouraging strong collaboration across functions
to get the highest impact.
(upbeat music)