Cutting costs: maximizing results
Updated: Jan 23, 2020
Cost-cutting is no longer de rigueur; we must be seen to be 'rationalising' and 'making efficiencies'. Whatever we call it though, one way or another, the aim of being in business is to give your customers what they want, so that they will pay what it is worth and do this as cheaply as you possibly can.
That's why cost-cutting is still just as relevant today as it ever was. What has changed, is the necessity for it to be inextricably linked with a reduction in service, quality or removal of jobs.
Cost-cutting can (and indeed should) be something that is part of a culture of an organisation, with entirely positive connotations for both employees and customers alike.
Here we go again - I mentioned it - the 'C' word - Culture!! The magic ingedient of business, sport and anything else you care to think of. Undoubtedly vital, but frustratingly difficult to identify and even harder to measure or change.
In practical terms then, I believe there are three clear actions that you can take in the short term to build that efficiency culture in your business or team;
1. Practice the 5Ys in every management meeting
Ensure you insert a standard agenda item for reviewing current issues (through feedback or data/MI analysis). Each member of the management team should be tasked with bringing a target number every two weeks/month and you spend 15 mins performing the 5 whys analysis on each item raised. The resulting solution is then taken away for immediate implementation and next meeting must report on the status and