According to McKinsey: many cost-reduction programs are "illusory, short lived, and at times damaging to long-term value creation". Their research concludes that only 10% of cost reduction programs show sustained results three years later. Yes, you read
that right: 90% of cost reduction programs fail.
Read this blog to find the full McKinsey report. Or read Mike Gammage's concise summary which highlights the three fundamentals from the report,
for sustainable performance improvement:
(1) 'Seeing' the process
(2) Local engagement
(3) Understanding the whole
Mike is one of several presenters you can meet at this year's "Inspiring Performance" conference in London, September 22-23.