Wednesday, May 12, 2010

5 Steps For Smarter Cost Cutting

Smartest  Cost  Cutting Strategies  As Advised by Steven Woods

With fast paced changes in a business environment  companies had to take fast decisions  with  little time for finer details to look for  any deviation  or error in selecting wrong strategies could lead to disaster for the  business

Here  are 5 basic steps for cost cutting

  • Baseline
To know exactly where the business stands and what  are the best practices in that particular industry . Its like fact finding  and to know their  baseline

  • Identify quick wins

Companies  should identify  the opportunities available  with  possibblities  of  savings  with minimum of investment and are sure of quick results.

  • Quantify and communicate cost reductions

Any cost cutting needs to be quantified  No assumptions or vague figures .facts and figures needs to be figured out before planning for cost reduction strategies and  achievements  to be highlihted  to all

  • Aligning cost reduction with business strategy
The larger business context needs to be considered in conjunction with any cost reduction exercise, because it is vital to understand how changes will impact utilisation and demand for IT resources

  • Simplify operations
Building on the need to improve business efficiency, reducing the complexity of operations can help organisations to leverage savings without cutting service levels. Organisations often run excessive number of applications, data centres and the like, many of which may be outdate, unused or unneeded.

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