A Dynamic Process For Constructive Cost Cutting

Take Out
TakeOut
A dynamic process for constructive cost cutting
© 2009 Robert H. Schaffer & Associates LLC
About TakeOut How TakeOut Works Pricing PRINT CLOSE

Cutting Costs to Stay Competitive TakeOut Timeline and Phases TakeOut Examples
Three Critical Elements TakeOut Leaves You With... Contact Us
t
Take Out
Your The question: The answer:

organization
has to become
leaner
Will it be weakened or
strengthened in the
process?
TakeOut
A dynamic process for constructive cost cutting

t
Take Out
This must be done.

But how you do it is as impor-
tant as what you are doing.
Three questions must be
addressed:
1
Almost every
As you remove costs, are you
RHS&A’s TakeOut approach
organization is preserving your most critical
capabilities – and removing will help you achieve cost-
cutting costs to unnecessary work? cutting goals without
stay competitive 2 sacrificing long-term viability
in today’s As you reassess your priorities,
or opportunities.
are you confident that people
environment will act on them?
3
As you restructure, are you
keeping people engaged,
and focused on your most
important objectives?

t
Take Out
1
Strategic Context
• Revisit performance targets
• Retain core capabilities
• Simplify the business model
2
Human Factors
Three Critical • Communicate need for Take out costs –
Elements of change
• Keep process fair and not capabilities or
Successful Cost transparent
Cutting • Make quick, clean decisions commitment

3
Drive to Implementation
• Engage people around the
new “must-dos”
• Set rapid-cycle improvement
targets
• Create a context where
people can quickly
experience success

t
Take Out
RHS&A works with a core group of managers to plan cost

reduction in focused areas such as:
• Restructuring • Energy
• Inventory • Product Rationalization
• Working Capital • Operating Cost/COGS
• Back Office • Facilities

This group revisits strategic and profit targets, prioritizes the
How TakeOut biggest gaps, and identifies opportunities to achieve those targets.
Works
At a one-day TakeOut event, participants create a plan to reduce
costs and meet new realities. They evaluate scenarios, make
decisions as a team, and make commitments to
deliver tangible benefits.
A portfolio of rapid-cycle initiatives assures that your company

will realize financial benefits quickly – and refocus people on
the things that matter most.

t
Take Out
Prepare Conduct Execution Plan

Before During After
(1-2 weeks) (1 day) (1 week)
Before the Event TakeOut Event After the Event

Step 1: Step 4: Step 5:
Scope the TakeOut – Conduct the TakeOut Consolidate and
TakeOut to specific costs and event. Finalize agree- summarize decisions
inefficient work. ment on best oppor- and implementation
Timeline and Step 2: tunities and plans for plans.
Phases Plan communications achieving them. Step 6:
about adjusted objec- Launch implementa-
tives and the TakeOut tion management
process. process.
Step 3:
Gather information
to focus TakeOut
participants.

t
Take Out
• Decisions based on an assesssment of opportunities, barriers to

change – with plans to address implementation challenges.
TakeOut • Leadership aligned behind the decisions.
Leaves You • A realistic, implementable plan – with short-term milestones and

With... performance metrics.
• Initiatives launched to realize near-term operational and

financial benefits.

t
Take Out
TakeOut fees are structured

Pricing to yield twenty or more times
the investment.

t
Take Out
Restructuring TakeOut Energy TakeOut

• Take out redundant jobs, work • Link conservation behavior changes
and costs to hit profit targets. to opportunity identification.
• Maintain commitment and focus on • Quickly realize significant reductions.
the 2009-2010 strategy. Product Rationalization TakeOut
Inventory TakeOut • Optimize your product portfolio for
• Drive changes in all functions that today’s environment.
contribute to inventory. • Eliminate unprofitable products and
• Take out costs, improve turns, and quickly transition internal operations
TakeOut optimize backlog. and customers.
Working Capital TakeOut Operating Cost/ COGS TakeOut

Examples • Reduce working capital as a percent • Look across functions to find
of revenue and EBITDA. and eliminate the duplicative and
non-value adding costs.
• Implement effective AR and inven-
tory processes at all sites. Facilities TakeOut
• Free-up or divest wasteful space
Back Office TakeOut
and other fixed infrastructure.
• Improve the value of back office
• Link to work-force needs.
functions or shared services.
• Streamline operations while
maintaining service levels.

t
Take Out
Robert H. Schaffer & Associates

30 Oak Street
Stamford, CT 06905
USA
Phone: +1-203-322-1604
Contact Us RHS&A Schaffer Consulting Limited

43-45 Portman Square
London W1H 6HN
United Kingdom
Phone: +44 (0)20 7969 2876
Info@rhsa.com


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Take Out

© 2009 Robert H. Schaffer & Associates LLC

About TakeOut How TakeOut Works Pricing PRINT CLOSE

Your The question: The answer:

© 2009 Robert H. Schaffer & Associates LLC

About TakeOut How TakeOut Works Pricing PRINT CLOSE

This must be done.

© 2009 Robert H. Schaffer & Associates LLC

About TakeOut How TakeOut Works Pricing PRINT CLOSE

Cutting • Make quick, clean decisions commitment

About TakeOut How TakeOut Works Pricing PRINT CLOSE

RHS&A works with a core group of managers to plan cost

A portfolio of rapid-cycle initiatives assures that your company

© 2009 Robert H. Schaffer & Associates LLC

About TakeOut How TakeOut Works Pricing PRINT CLOSE

Prepare Conduct Execution Plan

Before the Event TakeOut Event After the Event

© 2009 Robert H. Schaffer & Associates LLC

About TakeOut How TakeOut Works Pricing PRINT CLOSE

• Decisions based on an assesssment of opportunities, barriers to

TakeOut • Leadership aligned behind the decisions.

Leaves You • A realistic, implementable plan – with short-term milestones and

• Initiatives launched to realize near-term operational and

© 2009 Robert H. Schaffer & Associates LLC

About TakeOut How TakeOut Works Pricing PRINT CLOSE

TakeOut fees are structured

© 2009 Robert H. Schaffer & Associates LLC

About TakeOut How TakeOut Works Pricing PRINT CLOSE

Restructuring TakeOut Energy TakeOut

Working Capital TakeOut Operating Cost/ COGS TakeOut

© 2009 Robert H. Schaffer & Associates LLC

About TakeOut How TakeOut Works Pricing PRINT CLOSE

Robert H. Schaffer & Associates

Contact Us RHS&A Schaffer Consulting Limited

© 2009 Robert H. Schaffer & Associates LLC

About TakeOut How TakeOut Works Pricing PRINT CLOSE

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