Many SG&A improvement initiatives and cost-reduction measures look like a success on paper when in fact tremendous value was left on the table. For some, it was because the strategy lacked a sufficiently granular evaluation of opportunities and trade-offs. This alone is enough to undermine the benefit of hitting a savings target while sacrificing far more than necessary in the process.
But another opportunity often missed is when the strategy doesn’t take into account the value of the interrelationships between people and processes, and the potential of these interrelationships to generate future value within the new organizational design.
