Tag: cutting

Cutting Costs Without Losing Your Shirt

Are you feeling the crunch? After years of heavy investment and expansion, businesses across the economy are feeling enormous pressures to reduce their costs. Such a tactical reversal is a difficult change in approach for managers mired by the "grow at all costs" mentality of the 1990’s. But hold on a minute; despite the sense of urgency at achieving cost savings, it is vital that business managers apply strategic thinking to the reduction of their costs. A well-conceived cost reduction strategy enables managers to capture maximum value in the form of direct savings and the installment of a culture of efficiency while minimizing the destruction of company value resulting from cutting too much from core business activities. This article will outline some of the reasons that companies are feeling the pressure to reduce costs and then offer a five-step methodology for building a foundation of strategic cost reduction (SCR) in your organization.

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