Tag Archives: cost cutting

Working Smarter not Harder

My favorite catchphrase (not) came up in a discussion the other day.  The topic was getting more things done at a lower cost.  Typically salary costs are the greatest expense whether its a contractor you hire or employees of your business or organization.

Charitable organizations get around this cost somewhat by using volunteers but many still have a lot of paid employees which inflate the ongoing operational expenses of the organization.

Do more with less

For a vibrant organization (or even just from a personal or family perspective) if you can get more or even the same at less cost, well, go for it.

Doing less should cost less but cutting product quality or services does have negative impacts.  Hence the catch phrase, everybody needs to work smarter not harder.

Sneaky eh.  Basically the theme is we will reduce our resources so we have less to work with  but because you are smart you will be able to do more without increased effort.

Really! It is a bit insulting to think I am not smart yet nor have been smart in the way I work.  Due to cost  cutting I will suddenly become smart enough to do more with less.   What does that say about my work right now, ouch.

Overspending comes home

In the case of governments spending cuts often are tied to service reduction.  For other organizations who need to balance budgets to survive working smarter not harder becomes a mantra.

Squeezing the lemon for everything is the approach.  Unfortunately cost cutting usually is heightened in times of recession and high unemployment so we workers just put up with the squeezing.

We work harder all the time being told we are just being smarter.

 

Filling the Information Void

I often observe how social groups tend to fill information gaps by making up the data. This is the foundation of gossip. It begins with a factual foundation and then grows organically.

Most often, groups of colleagues, acquaintances and co-workers   begin with the kernal and fill in the gaps arriving at conclusions which are passed on as completedly factual.

For Example

An organizations leadership decide to be candid and communicate accross the organization that spending has reached unsustainable levels and cost cutting must ensue.

The work of identifying the best approaches begins but this is where the transparency disappears.  Large groups of the organizations human resources have no insight into the detailed planning.

The result is speculation, assumptions and sadly the new reality is arrived at.  Although there is probably little alignment with the actual plans developed by the organizations leadership (and known to few) the majority come to believe what they made up to fill the information gap.

Of course, this commonplace organizational behaviour can have very negative impacts.  For example, strong capable resources the organization needs to retain, depart.  Largely because they are convinced the layoff axe is imminent (although that might not be the case at all).

The unfortunate fact is this type of scenario is totally avoidable.  The mistake of not holding broad open disccussions about the detailed cost cutting strategies, sharing plans and ideas ongoing as they develop, leads to people creating their own answers.

Without the benefit of accurate information this answers can be far off reality and lead to unwanted consequences.