Wednesday, January 19, 2011

Cutting Costs..

"The light at the end of tunnel has been turned out as a cost cutting exercise" - Unknown.

Most of the companies today have a core business service and also a Utility service department. The main aim of the latter is to find out ways to limit the spendings and show a lot of liquidity in the treasury. (Nothing is wrong with it..).

The main issue with such a scenario is not everyone in the utility service department know where to cut the expenditure. The whole aim of cutting the costs result in short sightedness coupled with no real vision for the future. Its a very tough call to decide where not to spend, as everyone would not understand, how the core business service functions. Where the aim should be to extract a lot from the core business service in terms of productivity, the interim camaflouged desires play an upper hand in looking into the benefits only for the near future.


This issue might not be a straight forward one to solve, due to the following:
1) It always depends on the inclination of the person who makes the decision, towards either business functions; his ability, involvement, vision and preference.
2) There are always people of type, whose personal ego and benefit plays an upper role and whose opinions always biased
3) People from one group do not understand the purpose of the other group. Some people are in borderline, where they are partly from core business service and partly from utility service and are very confused.
4) Their is never enough planning and preparedness.
5) Very flaky economic time.
6) Indecisive people and people who are afraid to make mistakes.

Is there a solution to this?
I believe, as people drop their egos and put their heart and soul to the quality of their work and are able to influence others as a team, can possibly solve it. But the key ingredient would be that it is done as a team.

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