Cutting Costs and Embedding Productivity Disciplines 

Big, one-time cost reduction programs rarely deliver sustainable improvements to their overall cost structure. As any experienced weight watcher knows, crash diets do not work. Once you stop dieting, you just put the weight back on. KPMG International and its member firms have found that this ‘cost boomerang effect’ shows that there is a clear imperative for executives to re-examine their approach to cost-reduction. In essence, financial services firms need to turn their recession-induced crash cost diet into a sustainable lifestyle change of productivity improvement.

As an adviser to many of the world’s top financial services organizations, KPMG and its member firms has closely observed a wide range of productivity and cost-efficiency initiatives and has develop a keen understanding of why some succeed in delivering sustainable improvements, others fail. Our experiences and insights working with global financial services firms has shown that there are two critical areas firms need to focus to ‘keep off the weight’: Continuous productivity improvement disciplines and implementation.

Continuous productivity improvement
Art of Implementing

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