Consolidation

Consolidation efforts can stem from many causes.  Mergers and acquisitions typically result in redundant services, downsizing may necessitate a reduction of services, and often growth itself can lead to the splintering of departments over time resulting in functional fiefdoms that compete. 

It is often difficult for senior management to determine how consolidation should be undertaken and what should be included.  Fractionalized departments have a vested stake in maintaining the status quo arguing to their respective management why the consolidation should not take place.  Department heads themselves may desire to control a function and may also resist consolidation.

Steve George and Associates can provide analytical services to evaluate an organization and its distribution of similar functions making recommendations for consolidation and/or the creation of shared services.   When disagreements arise about the recommended course, SG&A can facilitate discussion between stakeholder groups and act as arbiter when consensus cannot be achieved.