Roadmap for the “New Normal”
A four-step approach for managing costs in a challenging business environment
The months and years ahead are likely to be characterized by ongoing economic uncertainty, reduced consumer demand and higher than average unemployment. These challenging business conditions appear to be the ‘new normal’.
According to a recent Deloitte study1 of cost management practices and trends in the Fortune 1000, the vast majority of senior executives we surveyed (90 percent) expect their companies’ revenues will grow over the next 24 months. Yet a similar number (80 percent) expect to focus significant effort on cost improvement. At the same time, many executives expressed uncertainty about powerful forces beyond their control, such as increased government regulation and the global economic outlook. This unusual combination of optimism, uncertainty and cost discipline exemplifies the new normal.
This report examines the challenges that today’s companies are facing and offers practical and demonstrated insights to help them survive and thrive in the new normal.
1 What’s next? Deloitte’s second biennial cost survey: Cost-improvement practices and trends in the Fortune 1000 (April 2011)