Tip of the week: Beter communicate your cost cutting operations
The way you communicate internally cost reduction operations is essential to make sure you will retain the best of it.
- Usually cost reduction is often met with strong resistance, fear and lack of cooperation. This requires strong leadership, urgency and commitment.
- Engage the help of everyone to help find and implement the solutions. People doing the day-to-day business know where money is wasted and can be part of the solution.
- Communicate through the entire process, establishing goals, analysis and planned action items.
- Make efforts and results visible: Advertise, publicize how you are being more cost effective, share news and updates on cost cutting efforts in monthly, weekly meetings or status reports.
- Provide the business with information and options to make right decisions.
- If reduction actions will affect the service, let the executives know.
- In case of mistakes or bad decisions, admit fault.
Cost savings is about competitiveness for the company. Everyone needs to do his part to ensure business survives and thrives.
