strategic cost control Definition
Strategic cost control is a process for managing an organization’s costs in alignment with its strategic goals. The goal of strategic cost control is to optimize an organization’s use of resources by aligning its costs with its desired outcomes.
Strategic cost control begins with identifying the organization’s strategic goals. Once the goals are identified, the organization can develop a cost management plan that aligns with those goals. The plan should include both short-term and long-term strategies for managing costs.
The short-term strategies should focus on immediate cost savings that can be achieved through operational efficiencies. The long-term strategies should focus on investments that will enable the organization to achieve its desired outcomes while minimizing costs.
Once the plan is developed, it should be implemented and monitored on an ongoing basis. The plan should be updated as needed to ensure that it continues to align with the organization’s ever-changing needs.
