How? Ask your employees. In an uncertain economy, CEOs scramble, looking for ways to cut costs and keep their businesses afloat. The most common step they take is to reduce the workforce by terminating employees, which reduces payroll but also has a devastating impact on morale and on customer service. It’s a short-term solution to a long-term problem.
What these CEOs should be doing is looking for ways to reduce day-to-day costs without sacrificing quality or service. Often, when they decide to do so, they hire high-priced consultants come in, look over their operations, interview employees, and then develop a glossy report of their findings. It’s an expensive and lengthy process. And most often it focuses on looking for ideas that will save $100,000 to $1 million in one shot.
Those CEOs are correct in turning to experts to identify areas in which they can cut costs—but they’re turning to the wrong experts. They should be asking their employees. Those employees already are on site. They already are knowledgeable about your people, processes, products, and services. They know what changes could be made to improve productivity and cut costs. They’re just waiting to be asked for their ideas—so ask them.