EP 34 - Victoria’s Secret’s Former CFO Tim Johnson on Building a Cost-Centric Culture
Description
LogicSource Board Chairman & Former CFO of Victoria’s Secret Tim Johnson's three-pillar methodology for collaborative cost cultures centers on objective third-party benchmarking, transparent measurement systems, and positioning procurement teams as strategic partners at the decision-making table. His approach consistently delivered results by focusing resources on growth and innovation rather than headcount reduction.
His organizational structure insights prove equally valuable: he advocates for indirect procurement reporting through finance rather than operations, citing the analytical rigor and accountability that finance leaders bring to cost initiatives. This ensures savings actually flow through P&L statements rather than disappearing into budget assumptions.
Topics discussed:
- Building cost-conscious cultures through collaboration rather than budget cuts to fund growth and innovation initiatives.
- Implementing three-pillar methodology: objective third-party data, transparent measurement systems, and strategic partnerships.
- Addressing the "episodic problem" where companies go to market infrequently versus specialized providers' continuous benchmarking.
- Positioning indirect procurement under finance leadership for analytical rigor and P&L accountability.
- Creating regional micro-distribution centers using closed retail spaces to accelerate store remodeling timelines and reduce project delays.
- Applying indirect procurement frameworks across industries through common spend categories and benchmarking approaches.
United States
