Question: How is it that my company is communicating a business upturn, record earnings, record growth, is not hiring and is undertaking significant cost-reduction initiatives?
I think I have answered this question many times as it is asked in different ways.
First of all, taking cost reductions has nothing to do with sales volume, customer traffic, or record profits. Cost reductions are a part of an organizations responsibility. As long as our customer satisfaction ratings are doing well, then the organization is performing well.
You should always be looking for ways to become more productive and to reduce unnecessary costs. Organizations who don’t do this and don’t have this as a big part of their culture will not be around for long. It is much healthier to be the right weight than to be overweight. You should want your organization to be healthy and to stay in shape and to perform well with just the right amount of resources as well. You should have great scales to measure your weight such as customer satisfaction surveys, employee satisfaction Survies and financial results.
Staying the right weight is not easy, but it is vital to us as humans and to a company’s life expectancy . . . and that is exactly what you should be trying to do as you put in place new ways to be more productive. . . . Lee