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In a downturn, back-office support services—finance, human resources, legal and other general and administrative (G&A) functions—are often obvious candidates for deep, sweeping cuts. While it may make sense to eliminate some functions, organizations should consider investing in others to make them more efficient and effective. A Bain & Company analysis of G&A expenditures at 37 companies showed that taking simple steps to reduce unnecessary back-office activities led to significant savings. But an average of 75% of the total savings came from substantive changes that enhanced support services by redesigning them or restructuring how or where they were done.
Source: Bain & Company