Avoid all-conceived cost slashing

Tue, Mar 26th 2013, 05:06 PM

Given the current economic climate, is there any Bahamian business leader or manager who isn't under pressure to cut costs?

This global trend will continue throughout 2013 with many experts predicting it will remain the prevalent economic and political driver over the next few years.

If you're therefore looking for some cost-cutting inspiration, then the newly-revised publication 'Driving Down Cost' by Andrew Wileman provides well-written and intelligent advice. Armed with a Harvard MBA, the author is an internationally renowned consultant, CFO of two technology businesses and is a regular columnist on Management Today.

Wileman has used his 25 years' experience and considerable expertise to develop a cost management toolkit of key ideas and strategies, highlighting how leaders must take the initiative and establish an intelligent cost control culture. To help achieve this aim, 'Driving Down Cost' includes real-life case studies and practical techniques for implementing cost reduction programs to minimize the impact of the ongoing worldwide recession.

The author argues that effective cost management is not simply a question of choosing between growth or cost-cutting. He claims that: "An intelligent cost-cutter needs to be able to distinguish between a good investment in future growth and bad excessive cost today." Unfortunately, there are no easy wins, and as some costs are cut, others will inevitably increase as a result of cost inflation. However, it is essential to acknowledge that ill-conceived cost slashing can destroy brands, quality and undermine future growth with long term adverse consequences.

It thus becomes apparent that managers need specific attributes to effectively manage cost, including persistence, an ability to keep things as lean as possible and simplify complexity. This translates into a number of key activities including:

o Individual accountability for continuous improvement and seeking feedback;

o The implementation of tools and tactics to enhance financial management and cost trend analysis;

o Effective people management including firing underperforming staff;

o Pragmatic relationships with suppliers and intelligent negotiation;

o Exploitation of the Internet and globalization.

o The development of a cost management strategy that includes pricing, acquisitions and growth.

No one said it would be easy, but 'Driving Down Cost' provides a practical toolkit that helps achieve cost efficiencies and improve your organization's strategic position; whether it be a private business or public sector service. It's like having a top management consultant's services for free - and that's a considerable cost saving in itself.

o 'Driving Down Cost' by Andrew Wileman.

Printed by Nicholas Brealey Publishing and available from www.Amazon.com.

Keith Appleton JP, BA (Hons), N.Dip.M, MInstLM has extensive experience within an academic, managerial and strategic leadership role. He is a member of the UK Institute of Leadership & Management and can be contacted at KeithAppleton@Hotmail.co.uk or follow him at twitter.com/WritingRightNow.

Click here to read more at The Nassau Guardian

 Sponsored Ads