Cost Management Principles for Wireless Carriers
When your average cost reduction program just won’t do
For wireless carriers who strive to be mediocre at cost management, the path is clear: Start by not gaining the commitment of top executives. Continue by zeroing in solely on labor costs. And for the kicker, don’t bother requiring all departments to participate.
Absurd, right? Yet, these are all critical errors that some companies make when seeking to reduce costs. As a consequence, they fail to achieve the results they seek, turning what could be a successful cost reduction plan into an average — or even failed — one. At a time when wireless carriers are under a series of cost pressures, avoiding these mistakes becomes all the more important.
A Deloitte thought leadership piece, “The Seven Cost Management Principles for Wireless Carriers,” identifies the key principles of successful cost reduction — the fundamental building blocks that cost reduction efforts should be constructed around. The result is a list of seven guiding principles along with insights on how and why companies should focus on each one.
Among the top findings: It is critical that companies secure commitment from the top executives. Additionally, companies must not ignore non-headcount costs and need to avoid letting any parts of the organization “off the hook” for contributing to the cost reduction efforts. We invite you to learn more by reading the full paper.