Cost Reduction
Achieve Sustainable Cost Reduction
While most companies continue to advance growth initiatives around customer focus and innovation, enterprise cost optimization remains among the top three strategic priorities along with cash flow management initiatives. In our 2023 Key Issues Study, 69% of companies reported a major cost reduction initiative – up from 65% in 2022.
How do the best do it?
Most companies approach cost reduction through staff reductions and discretionary spending freezes. Eventually, market pressures make these reductions hard to sustain. Our research has found that the strongest driver of sustainable cost optimization is a strategically designed service delivery model – one that purposefully and intelligently defines how certain work gets done, where, and by whom.
Are you taking the tight route to sustainable cost optimization?
With deep, practical experience in reducing costs in many environments, we can provide advice and solutions grounded in empirical data and proven practices:
Analyze
Comprehensive cost and cash-flow analysis.
Compare
Business benchmarking that illustrates how top-performing companies structure and deliver key functions.
Strategize
Service delivery strategies designed around the realities of your business.
Plan
Road maps for reducing and optimizing costs.
2025 US SG&A COST STUDY AND SCORECARD
Achieve Cost Leadership: How US Top Performers Use an Agentic Strategy to Slash SG&A Costs
Selling, general and administrative (SG&A) costs for U.S. enterprises have surged to 14.3% of revenue – the highest in five years – as 62% of companies struggle to contain expenses despite slowing growth and easing inflation. The Hackett Group’s November 2025 analysis reveals how elite leaders leverage agentic, AI-enabled operating models to drive sustainable savings of up to $290M annually for a $10B company.
2025 EUROPEAN SG&A COST STUDY AND SCORECARD
Master Cost Leadership Now: Learn from Europe’s Gen AI Leaders
Selling, general and administrative expenses (SG&A) costs have skyrocketed to 11.5% of revenue, the highest since 2020, with just 18% of firms slashing expenses. The Hackett Group’s breakthrough analysis unveils how Europe’s elite harness Gen AI to shatter cost barriers, unlocking up to €246M in savings for a €10B enterprise.