A guide to structure your cost reduction program

2020 . 05 . 19


Worldwide, companies are facing the impact of COVID-19, posing major and unprecedented challenges on businesses’ strategies and operations. Leaders at all levels of the organization are pressured to cost-cutting exercises. Yet, organizations must avoid a quick, knee-jerk response that only considers short term solutions.

Devoteam Management Consulting specializes, among other practices, in operational excellence. This includes a general cost reduction program that combines short-, mid- and long-term initiatives or an IT-specific cost optimization exercise.


Cost reduction program

Our cost reduction program consists of a five-step approach that is supported by a set of methodologies, tools, and accelerators, to deploy quick wins on the one hand and sustainable cost reduction initiatives on the other hand.

Our end to end approach starts with a top-down target definition, followed by an analysis of the baseline and the identification of opportunities. The subsequent validation of the different initiatives will establish a cost-cutting model supported by correct organizational design and allocated budget. Finally, initiatives will be rolled out and different KPIs will be tracked to ensure success.

Our end-to-end approach:


Our 5 step approach for cost cutting exercises


In addition, our DMC consultants provide a set of related methodologies and tools complementary to our unique approach.

  • we will rethink your target operating model and organizational design
  • we will explore the possibilities of robotic process automation
  • we will implement a lean six sigma, lean management system and/or change management approach. 


Our supporting methodologies and tools: 


Methodologies and tools support your cost reduction program


IT cost optimization

Devoteam Management Consulting goes beyond the general cost-cutting exercise. Since COVID-19 prompts more changes on our IT operations to allow a new way of working, many firms will set up specific IT cost optimization programs. At DMC, we embrace these changes as opportunities rather than challenges.


Our IT cost optimization program allows every CIO to assess its current IT organization with a focus on 6 key areas: business applications, infrastructure, quality service, governance & organization, workforce and sourcing strategy & vendor management. The assessment will establish initiatives to improve inefficiencies and optimize costs with a digital transformation at heart.




Do you need guidance in order to face the challenge of a cost-cutting exercise?