Addressing General and Administrative Complexity: The Next Frontier in Cost-Cutting
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Shared services, outsourcing, and offshoring can all help manufacturers reduce general and administrative (G&A) costs – but what’s next? For many companies, it’s getting a grip on the underlying business complexity that drives costs up in the first place.
This whitepaper explains how manufacturing companies can recognize and address four types of complexity in order to improve G&A efficiency and effectiveness. By addressing the structural drivers of complexity both within the organization generally and within G&A specifically, companies can reduce G&A costs by 15-20% as well as improve service delivery, quality, and customer satisfaction.
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Complexity reduction allows you to tackle the "hard stuff," which can lead to improvements in service delivery, quality, and customer satisfaction
By identifying four types of complexity in the organization generally, and within G&A specifically, you can take the appropriate steps to contain and address this complexity, thereby improving the efficiency and effectiveness of the G&A functions.
An effective G&A service delivery model encourages specialization around specific types of work, with the highest level of aggregation of service requirements leading to the greatest efficiency gains