Sustained Cost Transformation

What we do

Achieving a low-cost position is critical for most businesses both because of the obvious improvement to the bottom line, and for the ability to fund investments and growth initiatives that otherwise would be out of reach. Our clients typically use a portion of the captured savings to invest in R&D, marketing, new market entries or simply more competitive pricing.

While we many times work with companies to help them achieve functional excellence within individual areas of the organization, we unlock the most value by taking a cross-functional approach, and addressing operating problems at the nodes, or the points where business units, functions, geographies, and layers of management intersect and have to make and execute critical decisions. In our experience, this approach creates between three and four times as much value as the traditional approaches to right-sizing and functional excellence.

URGENT NEED?
Bain Accelerated Transformation is a cross-functional solution designed for companies that need to restore short term profitability and drive rapid turnarounds. Learn more

Our Approach

Bain takes a four-step approach to make cost reduction strategies both efficient and effective. The main goal: work with our clients to set up a system to accelerate revenue growth, not hinder it.

  • We first help diagnose key opportunities for savings. These typically occur both in functional areas, and in the nodes where different parts of the business intersect. From there, we set the right targets, using external market benchmarks and comprehensive, cross-functional metrics.
  • We team with the organization to mobilize it for the upcoming changes, working collaboratively across functions and addressing concerns to get the necessary buy-in. We do it with the organization, not to the organization, simultaneously launching some projects with relatively quick returns to build momentum.
  • With management, we design a customized plan for hitting the targets they are setting by applying our world-class toolkit. Cost reductions need to be conducted "with the grain" of the organization in order to make them stick and the key is to tailor them to overall strategy; bolstering revenue potential instead of undercutting it.
  • The last phase, implementation, is the one with the longest legs. Tracking cost metrics is one piece of it, but hardly the only one. If the employees at the front line don’t begin to think and act differently, the initial cost savings won’t last. To ensure that change becomes deeply embedded in the organization, we often help companies evaluate the degree of disruption each group is likely to experience and set up capabilities to mitigate it.

Rollover the graphic below to learn more about Bain's philosophy on sustained cost transformations.

Insights
We develop insights that work for our clients. Our approach and recommendations are highly customized and lead to practical actions. Visit Bain Insights to read more, or stay current on the topics you care about most by downloading the Bain Insights app today.
Our team

We work as an integrated part of your team, from frontline to C-suite, to deliver true results and make the changes stick.

Our leadership team

In addition to the leaders listed above, we have an extensive and diverse team of experts ready to serve the needs of clients worldwide. Please contact us to submit a business inquiry.