The key to expense optimization is implementing a sound and repeatable business process. In many cases, expense reduction programs are reactive, versus proactive. Companies fail to institutionalize an expense reduction program with clear roles and responsibilities.
Princeton Information works under the premise that expense reduction should be part of every manager’s job; where they should know their numbers; review them in regularly scheduled meetings to ensure this is top of mind, and operating effectively enough to free up capital for investment in larger opportunities.
Expenses should be aligned in clearly defined pools, as the purity of cost centers is often compromised over years of reorganizations and changes in responsibility.