CFOs and other business executives routinely measure many returns: investment, reputation and objective. These metrics give them a snapshot of business health. But how many of them measure the factors that contribute to an unhealthy business? The “cost of doing nothing” is another return you can measure to index the price of operating at the status quo this year. Financial executives who do probably will find that inertia robs their organizations silently. (more…)
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…)