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Wednesday, 10 February 2010 13:00 |
The pressure is on for the majority of businesses to cut costs and simultaneously improve their performance in today’s very challenging market place - for some this can be a real headache!
Faced with an inability to invest money into the business, many managers are feeling the pinch and don’t know where to turn in order to achieve their Company’s objectives.
At Jaluch we believe the most successful ‘cost cutters’ consider the wider implications of how and where they choose to cut their costs. They take time to think through the impact it will have on their clients and their employees, and organise their approach accordingly.
A successful cost cutting initiative is built on understanding and willingness from the Company’s employees. It is difficult to sustain high levels of motivation unless everyone is engaged in the need to trim costs, and in our experience if your employees can see the reason why you are doing something they will pull out all the stops to support you.
Research proves time and time again that if you can get your internal customer service right, it has a massive impact on your external customer service. The market place is extremely competitive and a demotivated workforce may mean that your cost cutting also serves to reduce your customer service levels and therefore productivity and income! Double disaster!
Cost cutting necessitates a change in mindset so that the financial implications of every decision are considered. If you issue your employees with a ‘to do’ list enveloping all of the costs they have to cut, they are unlikely to think outside the box and look for additional cuts that the business may not have thought of. Allow your employees to be a part of the decision to cut costs and invite them to look for solutions to make this happen. They will appreciate the fact that you value their thoughts and momentum should build throughout the company.
Make time to inform your employees why you want to make the cuts and work with them to brainstorm the right solutions for your business. You could facilitate an open discussion either face to face or by teleconference if travel costs would be an issue.
This may seem like an obvious approach, however many people do not invest this time with their employees and unfortunately the results speak for themselves. It has been said that ‘people will forget what you did or said, but they will remember how you made them feel….’ With this in mind, the current economic climate is the time to make your team ‘feel’ valued. There is a lot of uncertainty around but with honest and open communication you can enable your team to become more adaptable and resilient than ever before.
Cutting costs can be a positive and bonding experience for your employees, with a real sense of achievement for everyone involved.
Jaluch provides a Facilitation service to assist clients with more ‘challenging’ meetings; the use of an external consultant can sometimes break down barriers and engage demotivated employees. If you wish to discuss the use of a Facilitator please call us on 0207 152 4090 / 01425 479888 / 01189 349845 or contact us .
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