WEBVTT 1 00:00:00.480 --> 00:00:02.460 Cost management is especially important 2 00:00:02.460 --> 00:00:04.620 for CEOs in the current environment. 3 00:00:04.620 --> 00:00:08.130 Our survey of more than 700 C-suite executives confirms 4 00:00:08.130 --> 00:00:10.860 that cost-consciousness is top of mind. 5 00:00:10.860 --> 00:00:12.810 We're facing historic levels of change 6 00:00:12.810 --> 00:00:16.140 across all industries and an uncertain macro economy, 7 00:00:16.140 --> 00:00:18.690 featuring many challenges from inflation, 8 00:00:18.690 --> 00:00:21.690 high interest rates, a changing work environment 9 00:00:21.690 --> 00:00:23.790 through an emerging cost of living crisis, 10 00:00:23.790 --> 00:00:26.820 and the emergence of AI in every aspect of our lives. 11 00:00:26.820 --> 00:00:28.950 We can't pass cost on to consumers, 12 00:00:28.950 --> 00:00:30.930 we have to look at our P&L. 13 00:00:30.930 --> 00:00:32.040 Our research shows 14 00:00:32.040 --> 00:00:34.110 that leaders can create competitive advantage 15 00:00:34.110 --> 00:00:37.620 and fuel long-term success, even during downturns 16 00:00:37.620 --> 00:00:40.650 by reinvesting resources freed up from cost savings 17 00:00:40.650 --> 00:00:44.190 into growth actions such as innovation, AI, 18 00:00:44.190 --> 00:00:45.480 upskilling your workforce, 19 00:00:45.480 --> 00:00:47.910 or deploying and developing new products. 20 00:00:47.910 --> 00:00:49.713 But all of those require investment. 21 00:00:50.610 --> 00:00:53.940 To find that funding, CEOs need to take a hard look 22 00:00:53.940 --> 00:00:56.190 at where they invest scarce resources. 23 00:00:56.190 --> 00:00:58.170 Many companies have not closely reviewed 24 00:00:58.170 --> 00:01:00.780 their cost base holistically in many years. 25 00:01:00.780 --> 00:01:02.430 It's not simply cost out, 26 00:01:02.430 --> 00:01:05.250 but instead, investing in efficiency and effectiveness. 27 00:01:05.250 --> 00:01:07.980 And we know it's not a one-size-fits-all approach. 28 00:01:07.980 --> 00:01:09.930 Some companies will need to trim old products 29 00:01:09.930 --> 00:01:12.900 and services while others will require a more nuanced look 30 00:01:12.900 --> 00:01:14.700 at organizational effectiveness. 31 00:01:14.700 --> 00:01:17.640 For example, we helped a US-based airline achieve 32 00:01:17.640 --> 00:01:21.000 an unexpected cost reduction of 15 to 20% 33 00:01:21.000 --> 00:01:23.100 by redesigning their organization. 34 00:01:23.100 --> 00:01:25.530 And at the same time, we improved accountability, 35 00:01:25.530 --> 00:01:28.200 customer service, and the overall talent level. 36 00:01:28.200 --> 00:01:31.380 That solution probably wouldn't work if you were a retailer, 37 00:01:31.380 --> 00:01:32.850 which is why it is important to look 38 00:01:32.850 --> 00:01:35.940 at each company holistically when evaluating next steps 39 00:01:35.940 --> 00:01:37.380 in this economy. 40 00:01:37.380 --> 00:01:39.840 Ultimately, in order to ensure the health and growth 41 00:01:39.840 --> 00:01:41.430 of their companies, leaders need 42 00:01:41.430 --> 00:01:43.440 to thoughtfully manage costs now 43 00:01:43.440 --> 00:01:45.753 to sustain future growth and investments.