Service Industry

Cost-Cutting

Skills:

Program management
Social plan negotiation
Labor and co-determination law
Organization/ Design

Category:

Cost-Cutting

Year:

2017 and 2018

ASSIGNMENT

The competitiveness of the company was to be increased by means of a cost-cutting program. In particular, the administrative costs for administration and rent should be reduced.

Strategy

Andreas Tenkmann was a member of the steering committee and negotiated with the group works council as managing director HR and labor director. He monitored all necessary personnel processes centrally. Overall, he was responsible for:

  • Negotiation and implementation of the social plan (incl. reconciliation of interests).
  • Centralization of the finance department and the shared service centers of the school market.
  • Closure of three branch offices and a production kitchen, opening of a shared service center in eastern Germany (near Leipzig).
  • Significant reduction in headcount, streamlining of operational organization in the region.

Result

The harmonization and standardization of processes significantly increased competitiveness and efficiency. Administration and rental costs were significantly reduced and SG&A costs were reduced by more than two percent.

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