In the face of shrinking economic growth projections and continued business volatility, The Hackett Group, Inc. (NASDAQ: HCKT) today issued research detailing six operational imperatives designed to help companies combat economic uncertainty by enhancing the efficiency and effectiveness of business services, including finance, HR, IT, procurement, and supply chain operations.
According to The Hackett's Group new research, by focusing on six imperatives and making significant process improvements and other changes to various elements of their Service Delivery Model (SDM) for business services, a typical global company (with $33.4 billion in revenue) could cut the cost of business services by up to $302 million, or more than 25 percent. At the same time, companies can improve the quality and timeliness of performance information and decision-making processes, and also enhance business agility and responsiveness.
The International Monetary Fund and others have notched back their economic growth projections this year, in the face of an array of potential challenges, including sovereign-debt defaults, the collapse of the Euro currency, the so-called “fiscal cliff” in the U.S., and a slowdown of growth in the Chinese economy. Any of these scenarios could trigger a return to recession; in fact, the worst-performing European countries are already experiencing this “double dip.”
"Top performing companies have moved beyond an exclusive focus on cost reduction in their transformation of business services. Their overriding emphasis is to create better alignment to business objectives, whether that means growth or scale-backs," said The Hackett Group President of Advisory and Research Sean Kracklauer. "They understand that each area of business services has a crucial role to play if their company is to succeed in today's more challenging environment."Our research clearly shows how companies can gain the most value from their business services," continued Mr. Kracklauer. "We've identified six principal imperatives for service delivery, based on our SDM transformation framework, which ties the design of each service component directly to business strategy, and empirical data from our ongoing research and benchmarking with the world's largest and most complex global companies."