Need to reduce operating costs, this can mean you have to make bold and uncomfortable decisions.
Knowing WHY you need to reduce costs and to what level is the most important part of your journey.
A short term cost pressure should be managed very differently to one which is likely to be an ongoing challenge within your business. Equally the immediate financial stability of your business will take priority over anything else.
Alongside your playbook you should consider the following when making decisions:
- Colleague Engagement – Do not underestimate the impact poor engagement can and will have. Timing is everything, you do not want to rumours to be your method of communication, equally providing premature communications can cause concern and disruption
- Unintended Consequences – Depending on why you are looking to reduce costs, there are likely to be consequences you need to understand, manage and get comfortable with. Unintended consequences that haven’t been identified will create most concern and damage
- Customer and Brand Impressions – Your customer base and your brand reputation are essential, the last thing you want to create is a revenue challenge. Where possible, try and avoid significant disruption or impact to these
- A Fresh Set of Eyes -> Being close to the detail of your business is a great asset, but in times of strain this can be debilitating. Collaborating with a third party can provide fresh perspectives and help identify solutions that may have been overlooked
The next part in our series looks at a playbook for how to challenge and reduce costs within your business.
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