Objective – Cost Savings?

Is your business objective purely to achieve cost savings these days?

If it is, you are missing a very big point. In reality, costs can never go below what I call the minimum possible cost barrier (MPCB) – if you are in a real business, that is.

Organisations that are specialised and that have a very high level of skills and knowledge (i.e. experts) in their domain will have costs that approach the MPCB. In all my conversations with my business process consulting clients, I first strive to identify that particular industry’s MPCB. On that basis, we can then guage how much off is this particular client’s costs with regards to MPCB, and the reasons behind that gap. We then strive to propose steps to bring the client’s costs closer to the MPCB. There are many ways that costs can be brought to approach MPCB consistently, and such ways become obvious when we follow the process. More on this later…