Effectively communicating savings to company leadership is essential to demonstrating the value of the work your procurement team is doing. This process can be challenging, but with a structured, bottom-line-focused approach, you can ensure that leadership recognizes and values your team’s efforts. In this blog, we explore some effective strategies for presenting savings clearly and impactfully.
Start with an Overview
When starting your presentation, it’s important to provide an overview of the savings outcomes. This should include a description of the steps taken to identify savings opportunities, the actions taken to realize those opportunities, and the financial results achieved. A clear overview helps set the context and prepare leadership for the details that follow.
Key Points:
- Identifying Opportunities: Explain the process used to identify areas where savings could be realized. This may include expense audits, contract analysis, or benchmarking against industry best practices.
- Actions Implemented: Detail the specific actions that were taken to capture savings opportunities. This may involve renegotiating contracts, changing suppliers, or implementing more efficient processes.
- Financial Results: Present the direct financial results of the actions taken. Use concrete numbers and comparisons with the goals set by the company.
Focus on Financial Results
Company leaders are often more interested in the bottom line than in the details of the process. Therefore, it is crucial to emphasize the financial impacts of savings. Use concrete numbers to show how savings contribute to the financial health of the company. Compare the results with the company’s financial goals to demonstrate the success of the actions implemented.
Tips:
- Use Comparisons: Show how savings results compare to the company's annual or quarterly financial goals.
- Graphs and Tables: Use graphs and tables to visualize financial results, making it easier for leadership to understand.
- Impact on EBITDA: Highlight how savings contribute to the company's EBITDA, an important financial indicator for most leaders.
Use Data and Evidence
To support your financial statements, it’s essential to use data and evidence. This could include information from suppliers, financial records, or internal data analysis. Providing solid evidence increases the credibility of your presentation and helps convince leadership of the effectiveness of the actions taken.
Examples of Evidence:
- Supplier Reports: Include reports or statements from suppliers that confirm the discounts or savings obtained.
- Internal Data Analysis: Use detailed analysis of internal data to show cost savings over time.
- benchmarks: Compare results with industry benchmarks to demonstrate the competitiveness of your savings.
Make a Connection with Company Objectives
Show how savings relate to the company’s strategic goals. This will help leadership see the value of the work they’re doing and how it contributes to the company’s overall success. When savings are aligned with company goals, they’re more easily recognized and valued.
Strategic Connections:
- Sustainable Growth: Explain how savings contribute to the company's sustainable growth.
- Futuristic Investments: Show how saved resources can be reinvested in strategic areas to drive innovation and growth.
- Competitiveness: Highlight how cost reduction improves the company's competitiveness in the market.
Conclusion
By following these tips, you can ensure that savings results are communicated effectively and that company leadership is aware of the value of the work performed. Clear communication, focused on financial results and aligned with the company's strategic objectives, is essential to recognize and value the efforts of the purchasing team.
