A Better Way to Cut Costs –

“In contrast, a sustained approach to cost management – one that seeks to build a culture of consistent efficiency improvement across the enterprise and led by top executives – is the real key to financial success.”

This timely article, Cost management more effective than slashing, by Don Ogilvie and Paul Legere strikes a cord with us. Although the article refers to the banking industry the advice and findings they present are relevant for all. Too often we tend to wait until we get into a crisis mode before we react and then at times hastily make decisions which truly can have a long-term damaging effect. The article gives credence to what we have believed all along – focus on building your top line – guest counts – while talking costs on a daily basis. Educating your team members on where every penny of that dollar goes is what helps build long term successful financial growth. We know, the financial guys/gals, always tell us that they only care about the dollars but we know from experience that when we teach everyone on a unit/office level where the pennies go, they take more of a vested interest in helping save those pennies which quickly add up to those dollars. With this becoming part of the every day ‘culture’ of your business, you can reap those results daily which add up to a strong industry leading income statement.

Enjoy the article and we welcome your thoughts…