Vendor Spend Optimization
How do we manage spending across vendors and contracts and hold our partners accountable to ensure the best value?
Take time to implement an annual contract review across your supplier base. Setting up a rationalization process, even if only every 2-3 years, can help identify suppliers that add the most value. Complete strategic sourcing for any new contracts — not only to minimize costs but also to identify the best partner opportunities.
Additionally, opportunities exist to drive reduction with vendor management functions that are specific to modern tech infrastructure. For cloud-based & SaaS vendors, negotiate (and renegotiate) to ensure best-in-class contracts.
Core Function Transformation
How efficient and effective are we at running the core functions of our business, such as Finance, HR, Audit, and Compliance?
Each core function requires unique people, expertise, processes, and technology that must evolve. Taking a holistic view of how each function operates and integrates to support overall business strategy can often reveal substantial opportunities to update and streamline day-to-day activities.
Are we organized for optimal resource efficiency, employee experience and outcomes?
Most organizational structures change incrementally over time, becoming inefficient and costly. Functions are duplicated, spans and layers get out of control, job titles proliferate and accountabilities become confused. The time is now to redesign your organizational structure, ensuring it aligns with your strategy and delivers increased efficiency and agility.
Do we have the right workforce plan in place to optimize talent investments?
Ensuring a dynamic and engaged workforce requires creative and flexible approaches grounded in business strategy and culture.
A well-curated workforce planning process can help your team identify the right trade-offs in your talent supply decisions, between buy, build, borrow and bridge.
Facility and Real Estate Efficiency
How do we know if we have the best rates, utilization, and pricing?
Real estate and facilities are considered a necessary operating expense line item at most organizations. We believe they should be leveraged to support the organization’s strategy.
Evaluate contracts and services to ensure maximum impact and minimum expense. Eliminating duplicative services, leveraging your buying power, and securing the highest value from service contracts while minimizing the associated cost can substantially impact your bottom line.
Another path? Strategically aligning locations with your business strategy often surfaces unexpected savings.
Partner Ecosystem Efficiency
How do we effectively manage our partner ecosystem?
Leading companies are constantly evolving their partner ecosystems to tap into critical skill sets, improve products and services, accelerate time to market, focus the core team on high-value activities, and more. Effectively developing and managing partners is increasingly difficult as the pace of change and complexity of marketplace participants continues to increase.
Assessing your partner ecosystem to ensure it aligns with your strategy and operating model can establish foundational management needs to help you realize intended outcomes and adapt to the ever-changing marketplace.
Legal Entity Structure and Tax Efficiency
Are we capturing all the tax benefits that we are legally entitled to?
A periodic review of the tax code can help you spot changes that result in tax benefits. Minority ownership, hiring targeted groups, and change events (such as divestitures or acquisitions) are examples of opportunities to benefit.
Additionally, consider reviewing the sale of assets such as equipment or real estate for potential tax savings.
Energy Efficiency and Greener Operations
How do we align operations with clean energy and climate impact without compromising value?
Businesses face increasing stakeholder and regulator pressure around climate impact, particularly around greenhouse gas emissions. At the same time, the market presents increasing opportunities for more energy-efficient operations and accessible procurement of low-carbon energy, especially from renewable sources. This alignment of compliance pressures with actual market incentives allows businesses to green their operations while reducing costs. In the wake of August 2022’s Inflation Reduction Act in the US, renewable energy will become more accessible, with costs decreasing over time, while tax benefits have significantly expanded for building efficiency and other operational factors.
Now is a great time to reconsider your energy strategy for the next 10+ years, to realize benefits that will flow directly into your financials while decreasing carbon emissions (specifically Scope 1 and 2 Greenhouse Gas emissions).
Return on Investments of Projects
Before we launch and after we finish our projects, how do we validate the ROI?
Value realization is a highly intriguing yet elusive concept. For every project, proactive return on investment (ROI) tracking and management can significantly boost your organization’s bottom line. Here’s how:
- By confirming and baselining the qualitative and quantitative metrics against which project success should be measured before project launch.
- By actively monitoring variables that could have a positive or negative influence on project metrics.
- By auditing the comparative outcomes realized against your original baselines over the course of 30 days / 90 days / 12 months after the project is complete.
Keeping track of these elements puts you in the strongest possible position to meet ROI targets and realize your organization’s desired future state.
Back Office Efficiency
How can we consolidate the back office and IT for efficiency? Are we effective at reducing ‘tech debt’ and ensuring that people are making the best use of our latest technology?
Back-office processes and automation must constantly evolve to stay abreast of customer expectations and your organization’s changing needs. Automating the wrong things or not keeping processes and technology up to date can be detrimental to overall organizational agility and effectiveness.
Removing back-office, low-value tasks through continuous process improvement and intelligent automation can help you create and sustain a competitive advantage.
Short-term actions to reduce costs can lead to unintended, long-term consequences. Point B helps you create a holistic, adaptable cost-savings strategy that aligns with your organization’s goals and doesn’t lose sight of the future. Contact us today to learn how we help our clients discover sustainable savings solutions.