Last week, Deloitte jumpstarted a debate on whether companies need a “cost czar,” an executive appointed to oversee cost improvement activities across the entire enterprise. Cost reduction is a strident business theme in 2012. In its recent survey of 139 FORTUNE 1000 companies, Deloitte found that 80 percent are continuing to pursue cost improvements and 17 percent have established a cost czar to lead cost-improvement activities.
Does your company need a cost czar? On its website, Deloitte outlined the pros and cons of cost czars for you to consider. These are valid points, especially the admonishment that a cost czar isn’t a silver bullet.
But we think something is missing from the discussion. (more…)