Skip to main content
Welcome to Deloitte

If we have selected the wrong experience for you, please change it above.

Deloitte Turnaround and Restructuring (T&R) Newsletter

Insights from developing mergers and acquisitions trends

This newsletter addresses the current state and outlook for the Deloitte T&R practice, including recent engagements, announcements, case studies, and upcoming events. Check out the latest highlights to stay on top of corporate restructuring trends and make the most of the game-changing moments.

Subscribe

Fireside Chat

Ryan Maupin, T&R leader sits down with Karthik Krishnamoorthy, Performance improvement leader for a fireside chat on Turning Cost Transformation into Enterprise Value

Ryan: Congratulations on the launch of the Enterprise Cost Transformation survey report. I found it really interesting. The report suggests cost transformation is now nearly universal. What is driving that shift?

Karthik: Cost transformation has moved from an episodic restructuring exercise to an ongoing management discipline. Ninety-six percent of surveyed organizations have completed, launched, or are planning a transformation, while 40% expect to expand their scope and 34% plan to accelerate their pace. The key question is no longer whether to transform, but whether the organization can transform quickly enough to support its strategy.

Ryan: Is this still primarily about reducing costs?

Karthik: Not according to the report. Funding revenue growth ranked as the top reason for transformation, ahead of cost reduction and margin improvement. Leading organizations are using savings to create capacity for technology, talent, and market expansion. That reframes cost transformation from a defensive exercise into an investment agenda.

Ryan: If the ambition is so high, are organizations delivering against their targets?

Karthik: There is a meaningful delivery gap. Sixty-seven percent of leaders expect to meet or exceed their overall program targets, but only 14% achieved at least 100% of their target for their top priority lever last year. Across the various levers, 33% to 53% delivered less than 75% of their savings targets. Leaders need to test program-level confidence against granular, lever-level performance data.

Ryan: Technology modernization and AI are prominent in the report. What is holding organizations back?

Karthik: Technology modernization and AI-enabled automation were the top two transformation priorities, cited by 67% and 66% of respondents, respectively. But the barriers are not purely technical. Complex processes and slow decision-making were the leading enterprise-wide obstacles, while AI programs also face skills gaps and low workforce adoption. The practical lesson is that AI is a people and process transformation that happens to require technology.

Ryan: What distinguishes the organizations that are actually delivering value?

Karthik: The report highlights five disciplines: account for value leakage, fund implementation before announcing savings, establish a defensible three- to five-year baseline, assign one accountable owner, and announce only what the organization can defend and deliver. The strongest programs connect ambition with funding, governance, sequencing, and transparent measurement. Credibility is built through delivery—not through the size of the headline target.

Ryan: So, what should leaders do next?

Karthik: Start by narrowing the focus to a few value levers, validate the baseline, quantify implementation costs and expected leakage, and assign clear ownership. Then create a regular performance view that shows both savings achieved and the operational changes required to sustain them. That is how cost transformation becomes a platform for growth rather than another temporary savings program.

Recent engagements

Did you find this useful?

Thanks for your feedback