The five principles behind cost-cutting and increasing efficiency are

1: Detailed analysis of the “Current State”. This is where much attention and time need to be dedicated to finding out the current needs, applications, scope of work and fundamental components of a certain annual spend or a project.
2: Detailed projection of the “Future State”. This is where much due diligence is required to determine the changes in the Scope of Work and current needs to be reflected in the future needs, improvements, applications, compliance and desired additions. One can never make an accurate assessment of the “Future State” without spending a great deal of time and due diligence in determining the “Current State”.
3: Negotiation of the “Future State”. This is where another block of much needed time and due diligence needs to be dedicated to negotiating the best cost and terms as well as guarantees and service level agreements (SLAs) to the benefit of the host entity.
4: Execution of the agreement. A very important and critical step where the proposed state needs to be matched with what is reflected on the agreement paperwork such as actual components, features, terms and conditions as well as compliance and service level agreements discussed in the negotiation process.
5: Implementation and deployment of the “Future State”. This is another very important step where an accurate and detailed strategy and timeline is to be discussed and put in writing for both parties to sign off and arrive to a mutual understanding and agreement.

It is only by applying the above steps, that one can move forward with the deployment of a solid and winning strategy to cut costs and increase efficiencies in an organization. There are no short cuts. One has to put in the time, engage in much due diligence and apply a great deal of expertise and know how to achieve great results and pull of a successful project!