Few business activities cause as much trauma, while negatively impacting productivity & morale, than cost cutting -- especially when all or part of the cutting involves the laying off of people. People cuts are more expensive than they first appear: severance, unemployment, early retirement packages, loss of institutional memory, and don’t forget the future costs for rehiring and retraining. Worst of all, it creates an environment of distrust and a risk-averse, politically wary group of survivors. This often leads to the loss of people you had hoped would stay, due to the stress and uncertainty about the future.
A while back a large computer company challenged us to help cut costs without cutting people. We helped them identify over $100 million, without cutting heads, of which they implemented just over $90 million.
Prime Cuts™ is an innovative program for cutting costs. It engages people rather than scaring them with the prospect of job losses. It involves them in the delivery of measurable results, in a business discipline that people don’t normally view as a place to be innovative.
- An internally generated plan for cost management, with the emphasis placed on efficient & productive change versus the loss of valuable human resources.
- An engaged workforce. People whose jobs hang in the balance appreciate the way the initiative is conducted and have a higher likelihood of respecting and accepting the decisions that are made.
- A much higher likelihood of the approved changes being implemented and costs reduced because, as our core belief states, "people implement what they help create."
- New value generation opportunities, not just less costs for existing systems.
Download the full one-page description of Prime Cuts™ now to learn how we do it.