Article

Don't just cut overhead: Optimize it

In a downturn, back-office support services—finance, human resources, legal and other general and administrative (G&A) functions—are often obvious candidates for deep, sweeping cuts.

By Bain Global Performance Improvement practice

First published on Μαρτίου 12, 2009
min read


In a downturn, back-office support services—finance, human resources, legal and other general and administrative (G&A) functions—are often obvious candidates for deep, sweeping cuts. While it may make sense to eliminate some functions, organizations should consider investing in others to make them more efficient and effective. A Bain & Company analysis of G&A expenditures at 37 companies showed that taking simple steps to reduce unnecessary back-office activities led to significant savings. But an average of 75% of the total savings came from substantive changes that enhanced support services by redesigning them or restructuring how or where they were done. Source: Bain & Company

In a downturn, back-office support services—finance, human resources, legal and other general and administrative (G&A) functions—are often obvious candidates for deep, sweeping cuts. While it may make sense to eliminate some functions, organizations should consider investing in others to make them more efficient and effective. A Bain & Company analysis of G&A expenditures at 37 companies showed that taking simple steps to reduce unnecessary back-office activities led to significant savings. But an average of 75% of the total savings came from substantive changes that enhanced support services by redesigning them or restructuring how or where they were done.

Source: Bain & Company