Eric A. Hiller Reviews Top Mistakes Made by Executive Champions in Product Cost Management and DtV

· Trying to save one’s way to growth

· Not understanding the massive leverage of COGS savings on margin

· Focusing on short term savings without a plan for long term Product Cost management (Sisyphean projects)

· Not believing cost avoidance is more important than cost savings (the dark side of year-over-year cost reduction incentives)

· Thinking that a tool is the solution, not simply an enabler

· Under investing in a separate team and capability building for the organization

· Trying to do PCM / DtV in isolated teams with specialists in the background

· Not acknowledging the importance or knowing the priority of other organizational goals (e.g. growth, time-to-market, quality, etc.)

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