Common challenges in applying the Cost Optimization framework include identifying the most impactful areas for cost reduction, assessing the trade-offs between cost reduction and potential impacts on business efficiency and quality, and managing the risks associated with high-return initiatives. These challenges can be overcome by using tools such as a cost-benefit matrix and effectiveness curve to evaluate proposed reduction initiatives. It's also important to categorize initiatives into clear wins, worth the trade-offs, and last resort moves to prioritize actions. Lastly, maintaining a balance between cost reduction and quality output is crucial to avoid negative impacts on revenue.
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