{"id":21174,"date":"2016-09-01T00:00:00","date_gmt":"2016-09-01T00:00:00","guid":{"rendered":"http:\/\/global2020prd.wpengine.com\/insights\/why-most-cost-cutting-initiatives-fail-to-stick\/"},"modified":"2020-05-11T16:09:41","modified_gmt":"2020-05-11T16:09:41","slug":"why-most-cost-cutting-initiatives-fail-to-stick","status":"publish","type":"post","link":"https:\/\/www.global-integration.com\/insights\/why-most-cost-cutting-initiatives-fail-to-stick\/","title":{"rendered":"Why most cost-cutting initiatives fail to stick"},"content":{"rendered":"

An interesting article from McKinsey \u201cRethinking the rules of reorganization<\/a>\u201d\u00a0finds that around 60% of companies in the S&P 500 had launched large-scale cost red
\nuction initiatives in the past five years, however only 26% had successfully prevented cost from creeping back up<\/p>\n

In addition to some good practical advice on targeting reorganization and change, they identify three specific areas that we\u2019ve been focusing on for many years \u2013 meetings, decision-making processes and reporting as particularly areas where we can find savings and improvements.<\/p>\n

We would also add travel\u00a0which is often driven largely by attending internal meetings.<\/p>\n

So why don\u2019t these changes stick? Many people complain about travel, they hate meetings and filling in unnecessary reports. Temporary reductions seem very easy to achieve \u2013 for example by just having a travel ban. However these meetings, trips and reports seem to creep back as soon as we stop focusing on them\u00a0\u2013 why is that?<\/p>\n

In our work to help organizations embed new and sustainable matrix, virtual and global ways of working we have found that it\u2019s really hard to change these habits. Part of the problem is that, let\u2019s take the example of travel, it\u2019s not only about travelling to do the work.<\/p>\n