This PPT slide, part of the 33-slide Cost Reduction Methodologies PowerPoint presentation, outlines a framework for determining which business activities should be directed, controlled, or executed to achieve operational efficiency. It presents a triangular model divided into 3 main categories: Direct, Control, and Execute. Each category represents a different level of engagement with business activities.
At the top of the triangle, the "Direct" category includes "Strategy and Policy" and "Decision Taking." This indicates that high-level strategic decisions are crucial for guiding the organization’s direction. The emphasis here is on a multidimensional future focus, suggesting that leaders need to consider various factors when making decisions.
The middle section, labeled "Control," features "Value Added Activities." This implies that organizations should focus on activities that enhance value, likely through optimizing processes or improving service delivery. The text suggests a need for a business-focused approach, encouraging comparisons and predictions to assess the effectiveness of these activities.
The base of the triangle is the "Execute" category, which includes "Transactional Activities." This section emphasizes the importance of operational tasks that are essential for day-to-day functioning. The mention of "Feed data in" indicates that data management is a critical component of executing these activities.
The slide also highlights the distinction between "Full Service Outsourcing" and "Transactional Outsourcing," suggesting that different types of outsourcing can be utilized based on the nature of the activities. Overall, this framework serves as a guide for executives to strategically allocate resources and manage activities effectively, ensuring that the right tasks are assigned to the appropriate external service providers.
This slide is part of the Cost Reduction Methodologies PowerPoint presentation.
Developed by an ex-McKinsey and EY consultant, this presentation breaks down several cost reduction methodologies commonly used by management consulting firms.
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