But now an order has come down (from high enough above that you don’t have the liberty of debating its wisdom or feasibility) decreeing that you must find an additional 10%, 20%, or even 30% in administrative cost reductions, severance aside. You’ve been a good manager of a large department for some time now. This will stagger the seams, which results in a more natural look. Start the second row where you started off the first. If it’s not, start the row with a plank cut to a length greater than 1 foot. But remember that they have the greatest potential to be organizationally disruptive. Use the remainder of the laminate flooring planks you cut at the end of row one to start the next row, as long as it’s longer than 1 foot. To cut 30% or more, pursue cross-department and program-elimination ideas. This often eliminates the lowest-value ones, with moderate impact on other departments. To reach 20%, explore redesign ideas that reorganize activities. To get to 10%, go with incremental ideas that do not significantly disrupt your organization’s or department’s interactions with others. Second, match the kinds of opportunities you examine and implement to the degree of cost reduction required. You’ll need a combination of 10 or more actions. How do you do it?įirst, don’t expect to reach your target with a single big idea. You’ve been ordered to reduce your department’s costs by 10%, 20%, or 30%.
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