Cost Management Consulting Services include Financial Advisory Services, Cost Reduction Consulting, and Cost Management Training
Cost Reduction Analytics
The Efficacy Group, a cost management consulting firm, has developed a proprietary system known as Cost Reduction Analytics (CRA). CRA is a system for analyzing and reducing costs by mining procurement history, negotiating with vendors, surgically changing business processes, and improving policies and procedures. The goal of CRA is to reduce costs with minimal impact on overall operations. CRA does not involve more obtrusive cost control strategies such as reductions in workforce, process re-engineering, or divestment of unprofitable lines of business. CRA is not designed for companies that are in a dire financial position requiring drastic and immediate reductions in costs. CRA is designed for companies that are financially stable enough to accept a cost reduction program that will steadily bring results and efficiency to their organization without significant disruption to continuing operations.
When implemented, Cost Reduction Analytics is effective at finding the potential waste and inefficiency inherent in even the best managed businesses. The methodology takes a comprehensive look not only at how a company is spending funds but also at the shifting market conditions and organizational behaviors that erode spending effectiveness over time. A key component to CRA’s effectiveness is that it is relatively painless to an organization, and therefore tends to gain significant internal support. The program has a strong internal rate of return (IRR) and produces financial reports for management offering valuable insight into the capital flows and buying trends within the organization.
Turnaround Services
For companies facing severe financial turmoil and hardship, The Efficacy Group offers Turnaround Services, which is a more aggressive approach to cost reduction. These efforts typically include:
- Cash management and control
- Deep budget and personnel reductions
- Renegotiation of financial obligations with vendors and banks
- Bridge financing assistance
- Bankruptcy preparation (if necessary)
Turnaround services often involve tough choices and each of these may impact a company’s ability to operate and provide services to customers. It is critical that company management understand how their decisions will ripple throughout the organization and impact shareholders, employees, operations, and, perhaps most importantly, customers. The Efficacy Group understands these challenges and is experienced in finding solutions for even the most difficult of circumstances.
Transaction Support
Corporate transactions inevitably strain a company’s human resources. Often, employees who are already managing a full workload are assigned to support activities related to a transaction such as a merger, acquisition, or public offering. Equally concerning is that most employees have limited experience with such transactions. This scenario increases the already high inherent risk of transaction failure. The Efficacy Group offers services to support transactions by providing dedicated and experienced staff to augment the clients’ own internal resources. This support allows transactions to proceed smoothly and without the common severe disruption to normal business operations.
The Efficacy Group’s management team has supported initial public offerings, acquisitions, mergers, divestitures, and joint ventures. This comprehensive experience makes The Efficacy Group the right solution for any transaction support needs.
Financial Advisory Services
The Efficacy Group has provided a variety of Financial Advisory Services ranging from interim CFO services to serving on the Board of Advisors of emerging businesses. Our extensive experience allows clients to receive immediate benefit from our involvement. Examples of Financial Advisory Services provided by the Efficacy Group include:
- Assistance with raising capital
- Business model development
- Financial systems implementation
- Policies and procedures development
- Cash management and forecasting
- Internal budgeting
- Vendor negotiations
The Efficacy Group customizes its fee structure for Financial Advisory Services based on client needs by offering fixed fee arrangements for clearly defined objectives and flexible hourly rates for circumstances where the full extent of the engagement is not yet known.
Cost Management Training / Cost Reduction Analytics
The Efficacy Group has developed extensive training courses related to its proprietary system known as Cost Reduction Analytics and is regarded as a leading provider of Cost Management Training. Training services are generally customized to reflect a client’s unique industry and circumstances. The courses are tailored to large corporations interested in implementing a cost reduction initiative or to individuals whose job responsibilities include cost management.
Course description: Cost Reduction Analytics (CRA) is the premier course offered for Finance and Accounting professionals seeking to enhance their value by identifying waste and reducing cost in organizations without disruptive restructuring or headcount cuts.
Corporations interested in commissioning Cost Management Training should complete the information request at www.efficacygroup.com/contact/ and reference an interest in training.
