VERALLIS Presentation at Hands-On CFO Conference 2014

George DimopoulosManaging Partner

4 Major Barriers for continuous cost reduction

Countering the Greek Economy Slowdown:

Optimize Operational Performance

Create Competitive Advantage

Economic Environment

World Competitiveness RankingCountry 2013 2014

USA 1η 1η

Switzerland 2η 2η

Singapore 5η 3η

Hong Kong 3η 4η

Sweden 4η 5η

Germany 9η 6η

Canada 7η 7η

United Arabic Emirates 8η 8η

Denmark 9η 9η

Norway 6η 10η…………………………….…………………….………………………

Bulgaria 57η 56η

Greece 54η 57ηArgentina 59η 58η

Croatia 58η 59η

Venezouela 60η 60ηSource: IMO World Competitiveness Ranking 2014

‘’Why, is it so difficult for cost reduction measures to have enduring value to business results? ’’

Sustainable Cost Reduction

Source: Verallis

4 Major Barriers for continuous cost reduction

1. Not Knowing what exactly to cut

Merchant Card FeesUniforms

Industrial GasesSecurity

CouriersOther

CleaningWaste Management

Factory ConsumablesTaxes

Office SuppliesPrinting

PackagingFleet Management

InsuranceMaintenance

TelecommunicationsFacility ManagementTravel Management

FreightLogistics

MarketingEnergy

0.31.01.0

2.73.0

4.75.35.6

8.08.38.39.09.3

14.615.616.9

18.619.920.6

25.227.228.2

43.2

Up to three choices possible Source:EBS Business School & Ex-pense Reduction

“The first step on the road to cost reduction is to identify what is currently going wrong and what expenses are vital to cut!”

2. Not be proactive

“A lack of time is one of the main obstructions to effective cost reduction”

3. Not Knowing how much you should spend

“Most managers believe that what our company is spending is the <<right>> amount to be spent. However, too often this seems to be an illusion!”

4. Not regularly measuring your usage

“Without a clear monitoring and measuring system it is impossible to gauge where resources are being wasted”

Breaking Barriers

Rely on Experts

Expense Reduction Potential

Proven Results

22,7%

Stephan WagnerManaging Director

CFO?Take care of …Yourself

The complex role of the

(usually feeling

stressed) CFO :

Monitor and drive profitability

Improve business processes

Strive towards operational excellence

Support various business units

Reduce expenses

Interact with multiple third parties

Manage a team

The issue

“ I feel I’m spending too much time on day-to-day stuff”

“I’ve not really the time to focus on some important projects”

“I’m working too many hours, never see my kids”

“There are a lot of tasks I feel I cannot delegate ”

CFO care program

for the back to school period

4 focus points with a great pay-back

No 1Use the urgent - important matrix

1.

Use the urgent

– important

matrix Monitor your activities for a few days Analyze how to transfer from Q3 and Q4 to Q2 Repeat after a few months

Define an ideal target and go for it

4 x 2 hours rule

2h day to day work

2h training & managing my team

2h working on new value added projects for the company

2h for getting fueled (essential reading / networking / training)

No 2Manage your emails smartly

2.

Manage your

emails smartly

Don’t get disrupted by incoming emails

Check your emails 3 times max per day - one session will be dedicated to answer emails which need more attention

Use only 3 folders to manage your in-box 1. answered 2. to be answered 3. forget it

No 3Delegate (…smartly)

3.

Delegate smartly

Pick 2 - 4 talents in your team

Manage by objectives and by projects

Delegate

Give clear objectives / follow-up / give feed-back

Train them

No 4Get out of your office!

4.

Open up to new ideas

Get a feeling for new trends

Visit your clients, your suppliers, other company’s locations

Read things on the internet

Investigate new technologies

Talk to colleagues / third parties

Network

Get some training

Thanks and have fun!