This post is excerpted from our eBook: Rethinking Cost Management in the Digital Age
As cost management strategies evolve from one-dimensional (focused on spending) to two-dimensional (focused on spending and growth) to three-dimensional (focused on strategy, capabilities, and work), business leaders are going to find that yesterday’s cost management technology is no longer adequate for today’s operational conditions.
Today’s CFOs and business leaders need technology that goes beyond numeric cells and simple dashboards. In order to connect cost management to strategy, they need software that brings together the organization’s strategic objectives, capabilities, resources, projects, outcomes, and insights (Figure 5).
In a traditional organization, the cost management technology tools for managing each of these critical pieces are managed by a variety of owners from different functional domains, geographies, divisions, and more. This makes the task of consolidating information a political one, delaying the flow of information.
Leaders looking to overcome these obstacles have a few options. They can:
Work with a vendor or internal technical resources to create a system that combines the aggregation power of a business intelligence tool with the project tracking and resource allocation capabilities of a leading project management system.
Pros: Highly customized environment
Cons: Expense and Delays from custom programming and integration
Rely on manual reporting across the entire spectrum of tools, requiring siloed resources to consolidate and report on data at regular intervals
Pros: Fewer political hassles
Cons: Time wasted with manual efforts, potential for disagreements on data quality
Work with a software vendor to implement a platform for capturing the highest-level information and providing real-time views into business outcomes
Pros: Purpose built software faster to value
Cons: Additional spend for software
Ultimately, reframing costs as capabilities requires leaders at the highest levels of the organization to rethink how they connect spending to strategy. The most effective companies find ways to improve both efficiency and growth, creating a flexible, adaptable organization that can better withstand competitive threats and changing market conditions.
Catalant is a software platform for connecting strategy to execution. Our software helps organizations better understand their organization’s skills and capabilities, match the right people to the right work at the right time, and surface highly-actionable insights. More than 30% of the Fortune 1000, including companies like Anheuser-Busch InBev, GE, and Unilever partner with Catalant to get their most important work done faster and more efficiently.
The Catalant platform fills the gaps between strategy and execution, connecting strategy to the work and capabilities required to deliver results.
Greater Visibility Into Work
With Catalant, business leaders can track the most important strategic initiatives across the organization. Fast, attractive dashboards track not only the status, but the impact of individual projects against the initiative’s overall goals.
Empower Centralized Teams
Streamline access and deployment of centralized teams across business lines, functions, and geographies.
Smart Resource Allocation
Match the right capabilities to the right work, dynamically adjust teams as needed, reduce redundant work, and enable shared insights among multiple functions.
Control External Spending
Better utilization of existing employees, plus access to more than 65,000 experts through the Catalant marketplace helps reduce external spend.