CFO Focus: 7 filters for strategic cost-cutting
Waiting for the storm to blow over won’t work; instead do judicious budget trimming that puts strategy first
Like in the Great Recession, decision-makers are facing a margin squeeze, credit risk is unknown and non-interest income is under pressure. During that time, there was significant cost-cutting.
But it was different back then. Consumers weren’t as attached to digital channels as they are now, and they weren’t as compelled to instantly adopt them like they are now due to social distancing. This instant adoption means that competition for financial services just increased monumentally, so across-the-board cuts won’t cut it.
In this highly competitive environment, it is simply not possible to save your way to a relevant and compelling business model. Pulling back and waiting for the storm to blow over is not an option.
To meet the competition head-on and emerge from this crisis stronger, more relevant and ready for whatever the post-crisis world has in store, cost-cutting must be met with judicious methods that put strategy first.
continue reading »
