Cost reduction should not only be the concern of the management, it should be a part of the company culture.

Employee suggestion programs are the best way to collect ideas from your workforce. Traditionally, this is done by setting up a ‘suggestion box’. One could also create an email account suggestions@yourcompany.com, which decreases the threshold for employees.

However, at Bridgewater we see that if only the upper management benefits from cost cutting measures, few employees will be motivated to contribute suggestions. Be sure to make these suggestions worthwhile. A bonus based on the impact the suggestions have, is therefore advised. Also consider taking cost reduction suggestions from your suppliers and customers as well (360 degree feedback).

Finally, when reviewing the responses, make sure this is done by a team and not by 1 person. Try to create a reviewing team which consists of people from all departments who have different experience levels. The diversity of this group will pay off.

Categories : Advices | Tags : General expenses | 1 commentaire associé