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原文:
When you've got to cut costs now
You've been a good manager of a large department for some time now. You've run a tight ship. When possible, you've cut costs. But now an order e down (from high enough above that you don't have the liberty of debating its wisdom or feasibility) decreeing that you must find an additional 10%, 20%, or even 30% in administrative cost reductions, severance aside. You just don't see how it can be done.
plicating your life are the limitations on your choices. Because you don't report directly to the CEO, you're not in a position to advocate strategy changes or pursue wholesale shifts like offshoring. Nor do your instructions allow you to push for large investments--in new technology, for example--that would enable you to replace other departments. No, you have to do this the hard way: one item at a time and in short order.
You are not alone. Over the past 30 years, we have worked in, led, or provided consulting assistance to anizations in this situation--including panies, financial institutions, professional-services firms, high-tech start-ups, utilities, and universities. Our experience shows that administrative cost-reduction opportunities follow similar patterns virtually everywhere. The lessons we've gleaned may not solve your entire problem, but they should give you a substantial jump on it.
As you begin your quest for administrative cost savings, keep two key points in mind:
First, forget about finding a single idea that would radically change the cost structure of anization or department, thereby solving your problem in one go. (If such an idea existed, it would most likely entail so much risk that anization would never be willing to implement it.
) Instead, you should plan to reach your goal with bination of 10 or more actions.
Second, the degree anizational disruption caused by your reductions will usually be proportional to the degree of cutting you do. Therefore, you should tailor the reductions you
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