Strategic approach to cost cutting
Many consultants have made a great deal of money advising companies on cost-cutting.
I like your cost-cutting approach. It's just important to understand whether we're cutting strategic capabilities or operational capabilities.
When you cut too deeply from your strategic capabilities, you're limiting your validity for the long term.
If you cut too deeply from your operational capabilities, you risk alienating current customers who will get fed up and leave.
Many thanks for the comment. We can cust costs but we can't stop creating value for our stakeholders
Agree. Cost should be linked to value. Cut costs that don’t add value and increase spending if it brings worthwhile value.
Many consultants have made a great deal of money advising companies on cost-cutting.
I like your cost-cutting approach. It's just important to understand whether we're cutting strategic capabilities or operational capabilities.
When you cut too deeply from your strategic capabilities, you're limiting your validity for the long term.
If you cut too deeply from your operational capabilities, you risk alienating current customers who will get fed up and leave.
Many thanks for the comment. We can cust costs but we can't stop creating value for our stakeholders
Agree. Cost should be linked to value. Cut costs that don’t add value and increase spending if it brings worthwhile value.