Warren Buffet has now publicly stated he believes the American economy is in recession. Even without an official label, every business has been struggling with increased cost pressures, especially those due to skyrocketing energy costs. And to stay competitive, the natural reaction is to cut operating costs and tighten the corporate belt.
The last place you should trim costs, though, is in the service you provide to your customers. Do not give any customers that extra push they might need to look for someone else to provide them with service!
Jack Welch believes all organizations have operating fat (BusinessWeek, Mar. 3, 2008), no matter how lean they believe they currently are. He says that in good times, staff functions tend to "put on weight," meaning more data gatherers, report writers, program analysts, and others simply tallying numbers or executing special projects that "seemed good at the time."
Our book, Positioning Success, has a step-by-step action plan to help you review the efficiencies of your operations. Four different formats are available to order from our Home Page. Use this Action Plan to make the right cuts to stay lean and mean.
Every organization provides service by the very natural of carrying out activities. Not every organization provides its customers satisfaction while carying out those activities. Haphazardly cutting your service staff can only undermine what satisfaction delivery your team provides.
Make sure you trim the right corners!
By the way, Warren Buffet says not to worry--things will be OK in the long run.