101: Cutting costs
As the old saying goes, “You have to spend money to make money.” No matter what industry you are in, there is competition out there. So everyone needs to cut costs where they can to improve margins. Maybe you've already consolidated duplicate efforts, worked to build your buying power and allowed employees to telecommute. Here are three ways you may not have considered to reduce money your company is putting out there and pump up the bottom line.
Outsource. Freelancers are your friends, says Quicken Senior Manager Holly Perez in an article at BusinessNewsDaily.com. Contract help can be a godsend when your department gets busy or when there is a short-term project on the horizon. “If a particular temp worker stands out, you may be able to hire them … which could help you cut recruiting and training costs,” as well, she says.
If you still have them, consider eliminating liaisons or coordinators. This suggestion is made in an article by Kevin Coyne, Shawn T. Coyne and Edward J. Coyne Sr. at HBJ.org. “These positions were established on the assumption that two or more groups cannot understand each other's functions well enough to communicate efficiently. Multiple studies have shown that this assumption is often wrong,” they write. Where coordinators or liaisons can be valuable to companies that have departments all over the country, it's less true of those near to each other, the authors write.
Ensure the cost-cutting message is communicated down the line. “A few pronouncements from on high won't do the trick,” writes Josh Peters at Strategy-Business.com. “Managers from the CEO on down must reinforce the message consistently and continuously, clarifying corporate objectives and the behavior changes needed to reach them.” Otherwise, redundancy and duplicated efforts still exist, he says, or initiatives that are, ultimately, of low value to the organization.
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