In the past 30 years, I have learned a number of basic lessons while working with many large and small, successful and troubled organizations. I believe these lessons often can make the fundamental difference between business success and failure. Please read the following and pass it along to others who may find it helpful.
How Do You Cut Costs After You Have Cut to the Bone? The Top 30 Ways to Reduce Expense
By Fred Leeb
The first step is to recognize that further significant cost cuts demand strategic thinking, teamwork, and a sound business plan, the same process required for a growth plan. Otherwise, further cuts will weaken the organization and are very likely to lead to just more cost cutting later on.
Cost cuts should be a means of strengthening the organization for the future, not just buying time. An experienced consultant can provide the valuable perspectives to help make prudent decisions, the manpower to get the job done with a sense of urgency at a critical juncture, the new ideas and creativity from understanding how many other organizations have faced similar issues and the objectivity needed to counter entrenched vested interests.
In the list below, the most successful cost reduction methods are listed first and the least preferred (but the most often used methods) are listed last:
Least Preferred Cost Reduction Methods
As stated previously, cost cuts should be a means of strengthening the company for the future. An experienced consultant can provide: