Leadership and Business Wisdom - Eliminating Cost Centers.

Byline: S. Kamal Hayder Kazmi

Would the roof cave in if we stopped doing this work altogether?

No matter how well a business prevents cost inflation, it will still have to cut costs. This is because businesses are like people, and people often get sick no matter how carefully they exercise, control their diet, and avoid substance abuse. There is thus always the need for cost cutting. To start cost cutting, management usually asks: "How can we make this operation more efficient?" it is the wrong question. The question should be: "Would the roof cave in if e stopped doing this work altogether?" And if the answer is "probably not," one eliminates the operation. It is always amazing how many of the...