Tuesday
Sep232008
Cost Cutting...
Keeping a check on expenses should be an ongoing process... not an event.
When done as an event, it is normally a blood spilling exercise where staff, marketing and training are hit first and hit hard.
These are the three areas of a business that have a direct impact on company moral and ultimately the customer experience. Short-term the bottom line looks good. Share holders are happy. However, it eventually causes a decline in sales. So out come the razors again and the downward spiral begins.
When done as an event, it is normally a blood spilling exercise where staff, marketing and training are hit first and hit hard.
These are the three areas of a business that have a direct impact on company moral and ultimately the customer experience. Short-term the bottom line looks good. Share holders are happy. However, it eventually causes a decline in sales. So out come the razors again and the downward spiral begins.
"Whenever I read about some company undertaking a cost-cutting program, I know it's not a company that really knows what costs are all about. Spurts don't work in this area. The really good manager does not wake up in the morning and say, 'This is the day I'm going to cut costs, ' any more than he wakes up and decides to practice breathing." - Warren Buffett , the world's greatest investor.
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