4 Principles in Aligning Cost Mgt

The four principles of aligning cost management and top-line growth :

Principle 1. Use ambitious sales and earnings growth targets to motivate the need for, and commitment to, growth-oriented cost management.
Principle 2. Tailor cost-reduction targets to the existing cost position and strategy of each business.
Principle 3. Differentiate between "good" and "bad" costs.
Principle 4. Create the right conditions for ongoing cost management.

The author was Matteo Peccei - senior manager in the London office of Marakon Associates, a leading international strategy consultancy. He can be contacted at mpeccei@marakon.com

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