An Antidote for Cost Cutting
It is March 31 and the first quarter is in the books. How was it for you? If you are like many, it had its share of challenges - and by the looks of things there are more in store. Are you planning anything different going forward. Or are you stuck in the box with little or no new options?
I am not surprised what I hear around businesses these days, but am saddened by what I do not hear. The main strategy I continue to hear and read about is deeper costs cuts. Organizations are going back to the table with another missed forecast and plans to reduce budget by another 5 - 10%. Many are either on the cusp, or have already begun to let a few people go. That is the way cost cutting goes.
Sadly, there seems to be little or no words about growth. I am hopeful that I am just missing those conversations and actions, but if they are occurring, they are not very visible. If they are in fact not happening, I suppose struggling companies are relying on the overall marketplace to improve and hope they can ride along. We all hope that happens, but what if it does not?
Cost cutting is a management activity. Costs, especially excessive ones, are relatively easy to pinpoint, and the impact on the income statement can be seem pretty clearly. But still, it is painful to make many of those decisions, and be aware there can be severe consequences further down the road. Cut the roots too deeply and the plant withers and never recovers.
So here is an important question for you. If you are in an organization whose only survival strategy seems to be one more round of cuts, how much passion do you see in your people about their work? My guess is very little and I'll bet even your top financial officers are becoming weary. Unless you want to be totally dependent on the external economic conditions, you are going to need to get people re-energized on a future with the promise of growth. Find some growth opportunities right now that you and your colleagues can get really passionate about. When their fires get re-lit, you will indeed uncover some exciting new avenues of revenue and income. And cost management will find its proper place as important work, not the only work.
Passion is not just a "nice" concept, it may be the key to your future success. Make it a goal starting April 1 to bring it to life again. Rekindling the passion to grow is an option completely within your control, but you have to climb out of the box to do it.
Steve
I am not surprised what I hear around businesses these days, but am saddened by what I do not hear. The main strategy I continue to hear and read about is deeper costs cuts. Organizations are going back to the table with another missed forecast and plans to reduce budget by another 5 - 10%. Many are either on the cusp, or have already begun to let a few people go. That is the way cost cutting goes.
Sadly, there seems to be little or no words about growth. I am hopeful that I am just missing those conversations and actions, but if they are occurring, they are not very visible. If they are in fact not happening, I suppose struggling companies are relying on the overall marketplace to improve and hope they can ride along. We all hope that happens, but what if it does not?
Cost cutting is a management activity. Costs, especially excessive ones, are relatively easy to pinpoint, and the impact on the income statement can be seem pretty clearly. But still, it is painful to make many of those decisions, and be aware there can be severe consequences further down the road. Cut the roots too deeply and the plant withers and never recovers.
So here is an important question for you. If you are in an organization whose only survival strategy seems to be one more round of cuts, how much passion do you see in your people about their work? My guess is very little and I'll bet even your top financial officers are becoming weary. Unless you want to be totally dependent on the external economic conditions, you are going to need to get people re-energized on a future with the promise of growth. Find some growth opportunities right now that you and your colleagues can get really passionate about. When their fires get re-lit, you will indeed uncover some exciting new avenues of revenue and income. And cost management will find its proper place as important work, not the only work.
Passion is not just a "nice" concept, it may be the key to your future success. Make it a goal starting April 1 to bring it to life again. Rekindling the passion to grow is an option completely within your control, but you have to climb out of the box to do it.
Steve
posted by Steve C. at
8:07 PM
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