The Daily Stat: Corporate Cost-Cutting Programs Fizzle

Are you having trouble viewing this email? If so, click here to see it in a web browser. HOME   |   BLOGS   |   THE MAGAZINE   |   BOOKS   |   AUTHORS   |   STORE RSS   |   Mobile JUNE 28, 2010 Corporate Cost-Cutting Programs Fizzle Only 10% of cost-reduction programs sustain their results three years on, McKinsey research finds. Sales, general, and administrative (SG&A) costs are particularly unyielding: While manufacturing efficiencies have helped S&P 500 companies reduce the median cost of goods sold (as a percentage of revenues) by about 2.7 percentage points over the past decade, SG&A costs have remained at about the same level. Source: Five ways CFOs can make cost cuts stick Copyright © 2010 McKinsey & Company. All rights reserved. Reprinted by permission. Share Today's Stat: RELATED PRODUCT When You've Got to Cut Costs — Now Harvard Business Review Article You've been ordered to reduce overhead by 10%, 20%, or even (wince) 30%. How do you do it? Don't expect to reach your target with a single big idea; you'll need a combination of 10 or more actions. ADVERTISEMENT Follow the Stat: BEST SELLERS Guide to Persuasive Presentations HBR's 10 Must Reads: The Essentials Financial Intelligence Collection HBR's 10 Must Reads on Managing Yourself Guide to Better Business Writing PREVIOUS STATS Close High-School Friendships Point to Higher Wages States Face a Third Year of Revenue Shrinkage 3 Tips for Getting Out of Your Boss' Shadow Clothing for Big Women Bucks Downward Trend in Apparel Sales Where Sales Reps Go Wrong India Leads the World in Highway Deaths Global Warm Temperatures Break Record in May Swedish Papas Get Generous Paid Leave Vulture Brains Are a Valued Commodity in South Africa Recruiting Managers Is Tougher in China Than in India Job Seekers, Take Note Whether you've been laid off or are considering a job change, HBR's Guide to Getting a Job will help ensure that your next move is the right one. Only $19.95. Buy now » UNSUBSCRIBE   |   UPDATE YOUR PROFILE   |   MORE EMAIL NEWSLETTERS   |   PRIVACY POLICY Was this email forwarded to you? If so, sign up to start receiving your own copy. ABOUT THIS MAILING LIST You have received this message because you subscribed to the "The Daily Stat" email newsletter from Harvard Business Review. If at any point you wish to remove yourself from this list, change your email address, or sign up for other email newsletters and alerts, please visit the Harvard Business Review Email Newsletter Preference Center. ADVERTISE WITH HBR This enewsletter is read by thousands of decision makers every day. Learn more about connecting your brand with this audience. Copyright © 2010 Harvard Business School Publishing, an affiliate of Harvard Business School. All rights reserved. Harvard Business Publishing | 60 Harvard Way | Boston, MA 02163 Customer Service: 800-545-7685 (+1-617-783-7600 outside the U.S. and Canada)