Smart Spending is not Just About The Numbers

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Only 36% of executives report sustainable benefits from cost transformation initiatives despite their rise. To achieve sustainable transformation, leaders must instill a "smart spending mindset" that positions cost savings as fuel for growth. This engages employees by making them partners in reinventing the company. Leaders should emphasize the human aspect by building trust, highlighting employee contributions, and using behavioral science to motivate smart spending behaviors.

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Business leaders looking for new sources of competitive advantage and agility are starting to embrace business design. And for good reason. With broad applicability, business design allows companies to augment traditional problem-solving approaches with principles of design thinking to drive innovation. It provides a new way of looking at challenges, solving problems and understanding those they serve.

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Smart Spending is not Just About The Numbers

2. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. LIMITS COST TRANSFORMATION OF THE Despite the rise of cost transformation programs, just 36% of senior executives report sustainable benefits from these initiatives.

3. The secret to a sustainable transformation? Create a smart spending mindset. Leaders who instill the right mindset, and make their employees partners in reinventing the company, tend to see better results. These leaders directly correlate savings to growth in an inclusive, business-driven approach. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. MINDSET MATTERS

4. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. When leaders position cost savings as fuel for growth, it is a critical first step towards engaging and motivating their current workforce — and the future workforce. FULL SERVICE NOT LIP SERVICE

5. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Building trust and creating buy-in to the smart spending vision is a must. In an era where 82% of organizations are focused on cost reduction to improve margins, addressing the human part of the equation matters. FULL SERVICE NOT LIP SERVICE

6. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Downplaying the process aspect of smart spending, and emphasizing mindset, bodes much better for the success of the program. USING HUMAN NATURE TO YOUR ADVANTAGE Employees who want to spend wisely are more likely to do so than employees who are issued an edict from Executive Row. • Show employees where savings go • Highlight everyday heroes who shave costs or reinvent more efficient processes • Recognize and reward positive behaviors

7. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Innovation naturally occurs at scale when employees feel like partners in their company. EQUALS INNOVATION Crowdsourcing allows rapid collection of employee ideas in volume. Rapid prototyping and advanced analytics allow organizations to engage employees at all levels, making cost transformation less top-down and more bottom-up. EMPLOYEES PARTNERSAS

8. PROVE A PARTNERSHIP Tie your company’s progress directly to employee ideas and foster a partnership mentality. High levels of passion and drive can increase benefits realization by 50%. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 1 HOW TO MINDSET MASTER BECOME A

9. CREATE INTRINSIC APPEAL Use behavioral science principles to motivate smart spending behavior. Emphasize the positive, make opportunities relatable and appeal to social proof to reinforce the adoption of new norms. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 2 HOW TO MINDSET MASTER BECOME A

10. DEMOCRATIZE WITH DIGITAL Leverage social, analytic and collaboration tools to engage employees across the organization. Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. HOW TO MINDSET 3 MASTER BECOME A

11. LEARN MOREabout how to prepare your future workforce with a smart spending mindset with our full report: Copyright © 2017 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. @AccentureStrat Follow us on LinkedIn Smart spending is not just about the numbers

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