BNET: HOW TO AVOID CRISIS-LED COST CUTTING
BNET’s Stuart Cross poses the question, “How would you change your business if your profits were cut by 50% overnight?” He responds with 5 ways to avoid crisis-led cost cutting.
BNET Excerpt:
How would you change your business if your profits were cut by 50% overnight?
I was working with an executive team last week, helping them to create focus and alignment around their agenda for the next 12-18 months. During our discussion it became apparent that the business has a potential problem that, in the worst case, could halve their profits.
Unsurprisingly the team had done some work to determine how they could reduce their costs if the worst case was to happen. Despite recent actions they had already taken to offset the effects of the recession, the exercise helped them discover several interesting and exciting new ways in which they could more than cover the potential shortfall.
And here’s the interesting thing: many, if not most of the ideas can be applied to the existing business whether or not the worse case happens.
So why do business leaders wait until there is a real crisis before taking the steps necessary to create a more valuable, higher performing company, and what can be done about it?
Here are five proactive steps to help you and your organization stay on top of your cost base…