Tight margins. Tough decisions. Roland Berger helps you optimize to outperform.
How CFOs can unlock financial leeway
A roadmap to boost resilience, cut costs, and secure strategic flexibility
In 2025, CFOs across industries are facing a perfect storm: sluggish Eurozone growth, geopolitical tensions, and rising supply chain risks are putting pressure on margins. The old playbook—cutting costs reactively or squeezing budgets across the board—is no longer enough. To stay competitive, CFOs must rethink how operations contribute to financial performance and unlock hidden potential in the value chain.
Our paper outlines a structured approach for identifying savings potential across five key cost levers. The message is clear: finance leaders who collaborate across functions—from R&D and procurement to supply chain and production—can generate measurable gains in EBIT, cash flow, and resilience.
"A CFO-driven, data-backed approach ensures alignment between financial goals and operational execution, enabling focused initiatives with measurable performance gains."
From P&L to lifecycle: A new way to spot cost potential
Instead of relying solely on traditional P&L views, the paper advocates for a lifecycle-based analysis of costs. This means looking at the entire value creation process—from development to operations—and identifying where inefficiencies can be tackled most effectively.
The potential for cost reduction varies by lifecycle stage, with development and product cost reductions offering 5-15 % potential, investment reductions 10-20 %, SG&A and indirect material cost reductions 5-20 %, and working capital reductions 8-15 %. The impact on EBIT and cash flow varies, with implementation complexity ranging from low to moderate.
Five cost levers, five areas of opportunity
Across five key levers, the report outlines average cost reduction potentials. Each lever is explored in detail, with guidance on how to act, what challenges to expect, and which digital, procedural, and structural tools can support change. The paper also includes practical “spins”—specific tactics and initiatives—that can be adapted to a company’s unique context.
1. Development and product costs
Early-stage decisions often lock in future costs. CFOs can influence this phase by challenging specifications, reviewing project scopes, and introducing cross-functional checkpoints. Digital tools such as prototyping and software costing help reduce complexity and speed up development without compromising quality.
2. Material costs
Recent inflation and supply chain shocks have made material costs volatile. CFOs can work with procurement to implement fact-based supplier negotiations, optimize sourcing strategies, and simplify product features. Smart use of tools like AI-driven costing and CO₂ trade-off calculators can support better decisions.
3. Investment reductions
CAPEX control is not just about cutting budgets. The report recommends managing the full investment lifecycle—standardizing technology stacks, avoiding design overspecification, and planning for long-term maintenance costs. Transparency and early involvement from finance are key to minimizing risk and improving ROI.
4. SG&A and indirect materials
Indirect costs are often harder to control due to fragmented ownership and weak data. Roland Berger offers a structured framework—based on its “RB savings formula”—to tackle these costs systematically. Initiatives include zero-based budgeting, centralized spending oversight, and automation of smaller procurement tasks.
5. Working capital optimization
Improving liquidity requires smart inventory and payment term management. The report introduces a step-by-step methodology—from mapping stock drivers to using AI tools for planning—that helps CFOs and supply chain leaders work together toward cash-focused goals.
Turn operations into a source of resilience
In a year marked by economic headwinds and tightening capital, CFOs have a strategic imperative: shift from reactive cost-cutting to proactive value creation. Roland Berger’s CFO Perspective 2025 shows how to do just that—by working smarter across development, sourcing, investment, and operations.
The report goes beyond abstract recommendations, delivering a clear framework for lifecycle-based cost optimization, realistic timelines and impact levels per initiative as well as practical tools and tactics, including AI-enabled solutions, digital cost modeling, and scenario planning. The paper is tailored for CFOs who want more than theoretical advice—they want execution-ready strategies that align finance with operational performance.
Download the full report to explore proven levers for unlocking your company’s financial leeway.
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