John worked a nicely paid accounting job in a nice city. Some 10 years into the job, things began going south in the company and it had to be abruptly shut down. John is 45, not exactly the most thrilling phase of life. He weighed out his options and made the most brilliant decision of his life to retire. An ardent saver, John made a careful breakdown of his expenses and incomes, including his wife’s full-time job that covered a major part of their income. He moved to a more economical living space, reconsidered his expenses, switched grocery stores, reduced the internet and found no difference and made all the other necessary steps. John is now a happy man with a happy life and is proud of his decision to quit working, he doesn’t even worry a bit about overspending. John is independent.
Many CFOs excel at cost-cutting but not all of them go beyond that and focus on optimizing business value. Cost optimization is a continuous process that companies need to embrace. While it is possible that most companies by now have optimized almost every operation they could, there is more than one way to attain the desired goal.