Skip to Content
  • Γραφεία

    Γραφεία

    North & Latin America
    • Atlanta
    • Austin
    • Bogota
    • Boston
    • Buenos Aires
    • Chicago
    • Dallas
    • Denver
    • Houston
    • Los Angeles
    • Mexico City
    • Minneapolis
    • Monterrey
    • Montreal
    • New York
    • Rio de Janeiro
    • San Francisco
    • Santiago
    • São Paulo
    • Seattle
    • Silicon Valley
    • Toronto
    • Washington, DC
    Europe & Africa
    • Amsterdam
    • Athens
    • Berlin
    • Brussels
    • Copenhagen
    • Dusseldorf
    • Frankfurt
    • Helsinki
    • Istanbul
    • Johannesburg
    • Kyiv
    • Lisbon
    • London
    • Madrid
    • Milan
    • Munich
    • Oslo
    • Paris
    • Rome
    • Stockholm
    • Vienna
    • Warsaw
    • Zurich
    Middle East
    • Doha
    • Dubai
    • Riyadh
    Asia & Australia
    • Bangkok
    • Beijing
    • Bengaluru
    • Brisbane
    • Ho Chi Minh City
    • Hong Kong
    • Jakarta
    • Kuala Lumpur
    • Manila
    • Melbourne
    • Mumbai
    • New Delhi
    • Perth
    • Shanghai
    • Singapore
    • Sydney
    • Tokyo
    See all offices
  • Alumni
  • Media Center
  • Εγγραφή
  • Επικοινωνία
  • Greece | Elliniká

    Select your region and language

    Global
    • Global (English)
    North & Latin America
    • Brazil (Português)
    • Argentina (Español)
    • Canada (Français)
    • Chile (Español)
    • Colombia (Español)
    Europe, Middle East, & Africa
    • France (Français)
    • DACH Region (Deutsch)
    • Italy (Italiano)
    • Spain (Español)
    • Greece (Elliniká)
    Asia & Australia
    • China (中文版)
    • Korea (한국어)
    • Japan (日本語)
  • Saved items (0)
    Saved items (0)

    You have no saved items.

    Bookmark content that interests you and it will be saved here for you to read or share later.

    Explore Bain Insights
  • Κλάδοι
    Main menu

    Κλάδοι

    • Aerospace & Defense
    • Agribusiness
    • Chemicals
    • Construction & Infrastructure
    • Consumer Products
    • Financial Services
    • Healthcare & Life Sciences
    • Industrial Machinery & Equipment
    • Media & Entertainment
      Κλάδοι
      Media & Entertainment
      • Media Lab
    • Metals
    • Mining
    • Oil & Gas
    • Paper & Packaging
    • Private Equity
      Κλάδοι
      Private Equity
      • Due Diligence
      • Exit Planning
      • Firm Strategy & Operations
      • Portfolio Value Creation
    • Social Impact
    • Retail
    • Technology
    • Telecommunications
      Κλάδοι
      Telecommunications
      • Capital Expenditure
      • Telco Digital Transformation
    • Transportation
    • Travel & Leisure
    • Utilities & Renewables
  • Συμβουλευτικές Υπηρεσίες
    Main menu

    Συμβουλευτικές Υπηρεσίες

    • Customer Experience
    • Sustainability
    • Innovation
    • M&A
    • Operations
    • People & Organization
    • Private Equity
    • Sales & Marketing
    • Strategy
    • AI, Insights, and Solutions
    • Technology
    • Transformation
  • Digital
  • Πληροφορίες
    Main menu

    Πληροφορίες

    • Industry Insights
    • Services Insights
    • Bain Books
    • Webinars
    • Bain Futures
    View all Insights
    Featured topics
    • Artificial Intelligence
    • Managing Inflation
    • Thriving in Uncertainty
    • The Talent Imperative
    • Macro Trends
    • Healthcare Private Equity Report
    • CEO's Guide to Sustainability
    • Technology Report
    • Energy & Natural Resources Report
    • Paper & Packaging Report
    • CEO Insights
    • CFO Insights
    • COO Insights
    • CIO Insights
    • CMO Insights
    View all featured topics
  • Σχετικά με εμάς
    Main menu

    Σχετικά με εμάς

    • What We Do
    • What We Believe
    • Our People & Leadership
    • Client Results
    • Awards & Recognition
    • Global Affiliations
    • Social Impact
    • Sustainability
    • World Economic Forum
    Learn more about Further
  • Careers
    Main menu

    Careers

    • Work with Us
      Careers
      Work with Us
      • Find Your Place
      • Our Work Areas
      • Integrated Teams
      • Students
      • Internships & Programs
      • Recruiting Events
    • Life at Bain
      Careers
      Life at Bain
      • Blog: Inside Bain
      • Career Stories
      • Our People
      • Where We Work
      • Supporting Your Growth
      • Affinity Groups
      • Benefits
    • Impact Stories
    • Hiring Process
      Careers
      Hiring Process
      • What to Expect
      • Interviewing
    FIND JOBS
  • Γραφεία
    Main menu

    Γραφεία

    • North & Latin America
      Γραφεία
      North & Latin America
      • Atlanta
      • Austin
      • Bogota
      • Boston
      • Buenos Aires
      • Chicago
      • Dallas
      • Denver
      • Houston
      • Los Angeles
      • Mexico City
      • Minneapolis
      • Monterrey
      • Montreal
      • New York
      • Rio de Janeiro
      • San Francisco
      • Santiago
      • São Paulo
      • Seattle
      • Silicon Valley
      • Toronto
      • Washington, DC
    • Europe & Africa
      Γραφεία
      Europe & Africa
      • Amsterdam
      • Athens
      • Berlin
      • Brussels
      • Copenhagen
      • Dusseldorf
      • Frankfurt
      • Helsinki
      • Istanbul
      • Johannesburg
      • Kyiv
      • Lisbon
      • London
      • Madrid
      • Milan
      • Munich
      • Oslo
      • Paris
      • Rome
      • Stockholm
      • Vienna
      • Warsaw
      • Zurich
    • Middle East
      Γραφεία
      Middle East
      • Doha
      • Dubai
      • Riyadh
    • Asia & Australia
      Γραφεία
      Asia & Australia
      • Bangkok
      • Beijing
      • Bengaluru
      • Brisbane
      • Ho Chi Minh City
      • Hong Kong
      • Jakarta
      • Kuala Lumpur
      • Manila
      • Melbourne
      • Mumbai
      • New Delhi
      • Perth
      • Shanghai
      • Singapore
      • Sydney
      • Tokyo
    See all offices
  • Alumni
  • Media Center
  • Εγγραφή
  • Επικοινωνία
  • Greece | Elliniká
    Main menu

    Select your region and language

    • Global
      Select your region and language
      Global
      • Global (English)
    • North & Latin America
      Select your region and language
      North & Latin America
      • Brazil (Português)
      • Argentina (Español)
      • Canada (Français)
      • Chile (Español)
      • Colombia (Español)
    • Europe, Middle East, & Africa
      Select your region and language
      Europe, Middle East, & Africa
      • France (Français)
      • DACH Region (Deutsch)
      • Italy (Italiano)
      • Spain (Español)
      • Greece (Elliniká)
    • Asia & Australia
      Select your region and language
      Asia & Australia
      • China (中文版)
      • Korea (한국어)
      • Japan (日本語)
  • Saved items  (0)
    Main menu
    Saved items (0)

    You have no saved items.

    Bookmark content that interests you and it will be saved here for you to read or share later.

    Explore Bain Insights
  • Κλάδοι
    • Κλάδοι

      • Aerospace & Defense
      • Agribusiness
      • Chemicals
      • Construction & Infrastructure
      • Consumer Products
      • Financial Services
      • Healthcare & Life Sciences
      • Industrial Machinery & Equipment
      • Media & Entertainment
      • Metals
      • Mining
      • Oil & Gas
      • Paper & Packaging
      • Private Equity
      • Social Impact
      • Retail
      • Technology
      • Telecommunications
      • Transportation
      • Travel & Leisure
      • Utilities & Renewables
  • Συμβουλευτικές Υπηρεσίες
    • Συμβουλευτικές Υπηρεσίες

      • Customer Experience
      • Sustainability
      • Innovation
      • M&A
      • Operations
      • People & Organization
      • Private Equity
      • Sales & Marketing
      • Strategy
      • AI, Insights, and Solutions
      • Technology
      • Transformation
  • Digital
  • Πληροφορίες
    • Πληροφορίες

      • Industry Insights
      • Services Insights
      • Bain Books
      • Webinars
      • Bain Futures
      View all Insights
      Featured topics
      • Artificial Intelligence
      • Managing Inflation
      • Thriving in Uncertainty
      • The Talent Imperative
      • Macro Trends
      • Healthcare Private Equity Report
      • CEO's Guide to Sustainability
      • Technology Report
      • Energy & Natural Resources Report
      • Paper & Packaging Report
      • CEO Insights
      • CFO Insights
      • COO Insights
      • CIO Insights
      • CMO Insights
      View all featured topics
  • Σχετικά με εμάς
    • Σχετικά με εμάς

      • What We Do
      • What We Believe
      • Our People & Leadership
      • Client Results
      • Awards & Recognition
      • Global Affiliations
      Further: Our global responsibility
      • Social Impact
      • Sustainability
      • World Economic Forum
      Learn more about Further
  • Careers
    Popular Searches
    • Agile
    • Digital
    • Strategy
    Your Previous Searches
      Recently Visited Pages

      Content added to saved items

      Saved items (0)

      Removed from saved items

      Saved items (0)

      Forbes.com

      Cost cutting: no pain, all gain

      Cost cutting: no pain, all gain

      A preemptive approach to cost containment can make operations far more effective, not just leaner.

      By Molly Kerr and Véronique Pauwels

      • min read

      Article

      Cost cutting: no pain, all gain
      en

      This article originally appeared in Forbes.

      Wringing out corporate waste can be a liberating experience. Imagine looking back on cost-cutting efforts of the past five years and not having a single regret. The key is to regularly and aggressively hunt for “no regrets” initiatives that will make a company both leaner and more effective.

      Many companies tend to make cuts in response to an economic downturn or a shift in the market, or because they are under pressure from investors to deliver gains within a quarter or two. At that point, it’s too late to take more constructive measures, which require time to identify, plan and implement.

      By contrast, companies that generate an evergreen portfolio of no-regrets cost initiatives do three things:

      1. They launch a cost program before it’s needed.

      It typically takes 12 to 18 months to identify, prove and build out initiatives that come with no regrets. And because IT often underpins the best initiatives, it also takes time to build the appropriate systems.

      A reasonable cadence involves assembling midlevel teams every one to two years and challenging them to identify potential initiatives. The options can then be analyzed and the best handful chosen for implementation. Similar to a capital planning process, with all the projects arrayed and discussed annually, the teams refresh their commitment to the cost initiatives each year. That helps the company develop a culture of continually scouting no-regrets moves.

      2. They carefully analyze the impact on effectiveness.

      Anyone can cut 10% of costs from a department, but to make intelligent cuts, executives need to understand which activities are critical to the health of the business and which are expendable. Companies that take this evergreen approach have found it useful to sort potential initiatives into three categories.

      The first category, clear wins, will dramatically improve both efficiency and effectiveness. Consider a global beverage company that realized it could be smarter about its marketing spending: It harmonized point-of-sale materials like glassware and displays in taverns by brand worldwide and also consolidated sourcing and fulfillment. That not only reduced costs—the company is on track to cut 10% to 35% of its spending, depending on the subcategory—it also led to higher-quality materials and a more consistent visual identity across countries.

      The impetus for clear wins often starts with the need to address a particular problem, rather than the desire to cut overall costs. Omnicare, a US pharmacy provider to long-term care facilities, some years ago wanted to regionalize and streamline its prescription order intake process. To do that, Omnicare needed to build an electronic workflow system that could digitize and automatically triage incoming orders from nurses. The new system proved more cost-efficient, balancing the workload across employees in different time zones, and allowed for faster, more accurate order entry and better customer service.

      Worth the trade-off initiatives will substantially improve efficiency and have only a small impact, either positive or negative, on effectiveness. They often involve stopping or reducing costly programs that don’t yield the intended benefit, such as employee training that has fallen flat.

      Paring sizable merit pay increases can often be worth the trade-off. When the CFO at one company reviewed merit raises, she realized the finance staff had consistently received higher raises than staff in other functions. The CFO determined that merit raises for finance could be reduced from 5% to 3%, on average, without putting a dent in the department’s morale. This saved the company operating expenses without impacting operating effectiveness.

      Last resort initiatives will reduce costs but have a damaging effect on the business. Think of cutting the process improvement team at a factory or decreasing the investor relations staff from four people to one at a publicly held firm, which might eliminate road shows and same-day responses to investment analysts. Companies should undertake this kind of initiative only under duress or when a clearly superior use of resources surfaces.

      3. They take an enterprise-wide view in order to make valid comparisons of initiatives.

      Making fair comparisons of one business unit’s initiative with another’s requires using consistent metrics. Start by plotting potential initiatives on a grid, with one axis showing the impact on effectiveness and the other showing efficiency gains. Senior leaders should then discuss the relative placement of those initiatives, analyzing how each initiative would improve or hinder effectiveness, as well as testing the confidence level of estimated cost benefits.

      The process can yield surprising results. At a fast-food chain, a management team debated a set of potential cost-reduction initiatives. One of the leading contenders, proposed by the supply chain group, was reducing the frequency of bread delivery, but that would have also reduced product freshness and degraded the customer experience. Only after the team took an enterprise-wide view did it uncover other initiatives that could yield big savings and actually improve effectiveness, such as outsourcing some quality assurance functions. This insight would have remained buried without an enterprise-wide view.

      Cost-consciousness need not imply risk aversion, but rather a search for value in all spending. Senior leaders no longer demand a 10% cost reduction; instead they challenge employees to lower costs in ways that “make us a better company.” This gives managers permission to be creative about possible initiatives, research the economics of each one and present a range of options. With enough time and consistently applied effort to find the no-regrets initiatives, employees will rally behind the cause and companies will be able to fuel strong growth—without putting the business at risk.

      Written by Molly Kerr, a Boston-based partner with Bain & Company’s Performance Improvement practice, and Véronique Pauwels, an Amsterdam-based partner who is co-leader of the Performance Improvement practice in Europe, the Middle East and Africa.

      Authors
      • Headshot of Véronique Pauwels
        Véronique Pauwels
        Alumni, Amsterdam
      Contact us
      Related Consulting Services
      • Performance Improvement
      Transformation
      Choreographing a Full Potential Transformation

      Altering a company’s trajectory with game-changing results.

      More
      Performance Improvement
      Cost-Cutting with No Regrets

      A preemptive approach to cost containment can make operations far more effective, not just leaner.

      More
      Performance Improvement
      Want More Out of Your AI Investments? Think People First

      To unlock AI’s exponential productivity potential, companies must modernize workflow and workforce in tandem.

      More
      Performance Improvement
      It’s Time to Rethink Every Link in Your Supply Chain

      A function that once got little attention is now becoming a key differentiator.

      More
      Performance Improvement
      Transforming Maintenance with Artificial Intelligence

      With little to no capex, companies can turn maintenance into an engine of cash flow.

      More
      First published in Οκτώβριος 2014
      Tags
      • Performance Improvement

      How We've Helped Clients

      Turning bottlenecks into growth opportunities

      Read case study

      Lean Six Sigma solves a commercial bank's growth problem

      Read case study

      Retailer's performance improvement boosts shareholder value

      Read case study

      Έτοιμοι να μιλήσουμε

      Συνεργαζόμαστε με φιλόδοξους ηγέτες που θέλουν να καθορίσουν το μέλλον και όχι. Όχι να κρυφτούν από αυτό. Μαζί, επιτυγχάνουμε πετυχαίνουμε εξαιρετικά αποτελέσματα.

      Μείνετε μπροστά σε έναν γρήγορα εξελισσόμενο κόσμο. Εγγραφείτε στο Bain Insights, τη μηνιαία μας επισκόπηση των κρίσιμων θεμάτων που αντιμετωπίζουν οι παγκόσμιες επιχειρήσεις

      *Έχω διαβάσει την Πολιτική Απορρήτου και συμφωνώ με τους όρους της.

      Please read and agree to the Privacy Policy.
      Bain & Company
      Επικοινωνήστε μαζί μας Sustainability Accessibility Όροι χρήσης Privacy Cookie Policy Sitemap Log In

      © 1996-2026 Bain & Company, Inc.

      Contact Bain

      How can we help you?

      • Business inquiry
      • Career information
      • Press relations
      • Partnership request
      • Speaker request
      See all offices