Bill Lisowski shares updated information and questions related to the subject matter in the three books he co-wrote: Positioning Success, Earning Success, and Retaining Success. Look for facts and commentary on issues related to business management, leadership, people development and mentoring, process improvement, and current business news.
During unstable times, especially when revenues are dropping and costs are escalating, managers might be inclined to take dramatic action like cutting costs 10% across the board. While this might provide an immediate feeling of accomplishment, it also can be the wrong move that hurts your organization's ability to retain success. Two better strategies for cutting expenses (Entrepreneur magazine, Oct. 2008):
-
Cut costs strategically. Look at every expense category and ask yourself if reducing this expense will allow you to remain in business or potentially put you in a downward spiral. Do not cut areas that are the lifeblood of your organization--like success and marketing.
-
Lose customers to boost profit. Conduct a gross profit analysis of all customers to ensure each is profitable to the organization. Some sales deals might have been made to boost revenue at the cost of so many operational extras that the account is actually a cost drain on the organization. Not every customer is worthwhile, especially if it diminishes your profitability.
About Bill Lisowski
Bill Lisowski is co-author of the three book "Success Series," "Positioning Success," "Earning Success," and "Retaining Success." He has owned three small businesses, spent 6 years as an editor, journalist and photographer, handled increasing responsibilities during his 15 years working with 3 major Fortune 500 retailers, and has helped several small and medium sized service-oriented businesses as a consultant with his partner, mentor friend, and co-author, John Mengelson. Currently he is Senior Vice President for Vendor Management with IPT.