Strategic planning is an essential first step in any cost reduction program. In our experience it is best to begin with the ‘end in mind’ to ensure you have a clear vision of your desired direction and destination (a roadmap).
The roadmap defines what must be changed, why it must be changed, and in what sequence the change should be carried out.
Its value comes from simplicity, it does not contain all the details of the program; instead, it's high level, easy-to-understand by all stakeholders and is the bridge between strategy and execution providing an enduring set of guide rails for the duration of your cost reduction program journey.
It goes without saying that communication is one of the most important parts of any change program. We find the roadmap is the consistent artefact on which most communication is based throughout the cost reduction journey and therefore it must be able to be used with the C suite as well as the teams who are delivering it.
When you get it right it helps keep everyone aligned and moving forward in the one direction and to the same destination.
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