The average company spends 23 cents out of every dollar of revenue on overhead, yet most firms lack a plan or system for managing the spending for greater value. Managerial attention to overhead tends to be sporadic and is often driven by the need to cut costs in the near-term. Even if short-term cost reductions are achieved, companies then find themselves tied to a roller-coaster cycle of cost-cutting, costs creeping back over several years, and then cost-cutting again. Companies that get off the roller coaster will discover not only that financial markets rewards better overhead management, but also that changing the very way they view and manage overhead can significantly increase the return they get for every dollar invested in it
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