Identifying opportunities for cost cutting leaves those in charge vulnerable to accusations of inadequate cost monitoring. “If it is possible to cut costs now, why were they not cut before?” This risk increases for quick wins, as they take least effort and have the least amount of negative impact.
A cost-conscious continuous-improvement culture implies that room for improvement exists; continuously look for improvements and being mindful of complacency. Communicating during cost reductions is critical and can be the difference between a successful and unsuccessful cost reduction effort.
Define cost reduction proposals using words such as eliminate waste, increasing productivity, streamlining operations, reducing, transforming, and obtaining more value for expenditures.
Avoid words with negative impressions such as cost cutting, belt tightening, downsizing, and eliminating redundancies, terminating, and eliminating the dead weight.
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