Even companies facing the crisis in the best position are not optimistic that the recovery in 'V' will be rapid. In fact, more than 75% of the CEOs of multinationals on the 'Fortune 500' list, that is, the 500 largest companies in the world, believe that economic activity will not return to its pre-pandemic levels until 2022, and 90% of the top 50 multinationals expect to cut costs during the pandemic.

This is clear from a study by Oliver Wyman , which indicates that it is likely that during the third quarter of the year more companies will follow the example of cost reduction, as the forecasts of global demand worsen.

Faced with the World Bank's forecast of a 5.2% reduction in the global economy this year, Oliver Wyman notes that cost management has become a priority on the agenda of many CEOs for their company to survive.

In this sense, he points out that most organizations tend to take refuge in an "abrupt" reduction in costs, although winning companies in a crisis tend to adopt a "more conscientious" approach and focus on restructuring their cost basis so that profits are sustainable.

Specifically, more than 81% of the respondents agreed that their company had a clear and well-planned approach to its cost program, but only 35% of the participants considered that their program was successful.

Strategies

Oliver Wyman emphasizes the importance of building a cost reduction plan based on an analytical basis and with a support infrastructure for its management, setting objectives, ensuring good communication, aligning the team and establishing the correct levels of responsibility to achieve results. , based on four strategies.

Thus, it recommends taking into account the complexity when allocating resources, analyzing the costs and benefits, since only 30% of the respondents gave their organization a high rating for having provided the tools, training and resources necessary to run the program effectively.

Likewise, it calls for providing constant and transparent communication and adjusting individual and company incentives, as well as promoting involvement with the company's accounting. Almost 90% of the respondents agree with the fact that leaders take responsibility for the results of cost programs .

According to the criteria of The Trust Project

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