Optimizing Operating Costs
Hidden Unnecessary Costs Are Still Draining Your Resources
In most organizations, unintended inefficiencies naturally develop over time, silently and steadily driving up the cost of doing business.
Even if you think you’ve reduced non-essential costs as much as you can, there are likely still significant opportunities to reduce deeply imbedded non-strategic costs.
Using the best spend management practices from within the association and business communities, ACRE helps associations identify and eliminate hidden excess costs and prevent unnecessary cost growth going forward.
So Where Are These Embedded Excess Costs Hiding?
Benchmarking the costs of your programs and functions against other similar associations can provide meaningful data to show where many cost-saving opportunities reside.
But the most insidious wasteful spending is often hiding in legacy spending practices, processes, policies, and methodologies.
Some high-dollar excess operating costs can frequently be found in:
- Process Inefficiency
- Budgeting Methodology
- Purchasing Guidelines
- Uncompetitive Bidding
- Incumbent Supplier Pricing
- Billing/Collection Practices
- Payment Practices
- Underutilization of Services
- Duplication of Services
- Financial Policy Adherence
- Suboptimal Technology
- Negotiating Deficiencies
The Operating Cost Analysis
ACRE has developed a “minimally invasive” association-specific operating cost analysis that focuses on finding the biggest sources of excess costs. It’s a virtual process that, unlike an audit, requires little time of your staff.
After the analysis, ACRE provides a report of its findings that identifies problem areas, offers recommendations for remedial action, and customizes a long-term cost-optimization roadmap, including how to:
- Reduce overspending in travel, purchasing, and revenue collection
- Maximize the cost-effectiveness of processes, procedures, and policies
- Embed tools and systems that weed out hidden costs during budgeting
- Develop a cost-conscious culture, incentivizing best spending practices
Contact ACRE Today
Let’s Direct More Of Your Money To Your Mission