By Staff Report
Sep. 7, 2011
Company owners are driven by profits in most cases. Profits are earned bystrong sales and cost-efficient operations. The more productivity that can besqueezed out of each process, employee, machine, or hour, the greater thepotential for profit.
Given that the owners are striving for intense cost control, we might assumethat they are challenged by a slowdown in business because of the economy and/orthe terrorist attacks and their aftermath. Naturally, they’ll be looking to cutcosts wherever they can. However, sometimes you can cut too much, and thatapparent cost reduction actually turns out to cost more. Present your case tothem in terms of dollars and cents, as well as the work that needs to be done.You may have a “pay me now or pay me later” situation. A reasonableanalysis will help.
At the same time, see if you can find some ways to streamline the work beingdone. Can you improve the process to save some time? How will current andproposed conditions affect customers, sales, service, and the long-termviability of the company? Don’t fight the owners; counsel them in terms theywill identify with.
SOURCE: Roger Herman, CMC, The Herman Group,Greensboro, North Carolina, Oct. 3, 2001.
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The information contained in this article is intended toprovide useful information on the topic covered, but should not be construed aslegal advice or a legal opinion. Also remember that state laws may differ fromthe federal law.
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