Faced with a tough goal that cannot fail?
Embroiled in a crisis?
Bogged down with mediocre talent?
Frustrated by the limits of Lean and Six Sigma?
You are not alone.
Operating Cost Leadership, The Fourth Generic Strategy
Michael Porter, famous author and business leader, has led us all to see that a combination of cost optimization and market differentiation is very often the most profitable, long-term strategy for a medium or large organization. He called this approach the “Best Cost Strategy” - meaning that it was not necessarily the lowest cost, but a very good cost for the value of the product purchased and overall the best deal available.
Avanulo calls this approach, Operating Cost Leadership or OCL. The goal of OCL is to allow an organization to self-fund its differentiation approach with the savings derived from optimization of the current processes and the processes to be.
To ensure rapid and sustainable cost optimization, more and more organizations are applying Avanulo’s Cost Cutter process. Cost Cutter is a practical, employee-centered approach to optimization that is based on Feigenbaum’s, Cost of Quality methodology. Using Cost Cutter, our clients have sustainably reduced operating cost by 7-10% in 90 days or less - with the people in place, and without capital investment.
Organizations that have not optimized costs often pay up to 40% of their revenue in Cost of Quality. An organization that applies Cost Cutter can achieve a Cost of Quality of 8-10% in 36 months. For most organizations that level of cost optimization can fully fund their differentiation efforts, creating a cycle of positive growth and financial stability.
Would your organization benefit from a rapid and sustainable reduction in operating cost of 7-10% in the next 90 days?
Call us at 567-510-5200. We are sure that, in just 10 minutes, we will impress you enough to warrant a face-to-face conversation.