Can Resource Optimization reduce Costs and drive Revenue?

We are drawing close to the end of the year, a good time to look back and figure out if there is a need to remove unnecessary cost in your business.  Remove unnecessary cost in a company always implies a good management of resources and a healthier operation. Especially in times of economic uncertainty, it’s recommended to carefully spend only on strategic areas and optimizing the cost all over the operation.

How can you spend fewer assets more efficiently?

Looking into your operational needs, in term of human resource and time spent on each task, enables you to quantify the needed resources for the whole organization.

4 Critical Elements of Resource Optimization:

The first significant change that you will notice after eliminating unnecessary cost is the degree of organizational disruption. However the positive 4 elements that will impact your actions are as follows:

1. Increase your company’s productivity and competitiveness by improving the internal processes. By aligning your internal processes, you will offer value to your employees and customers alike.
2. Coordinate parallel activities between departments. If it’s your company’s case that more than one department is performing the same tasks or purchasing the same items that they could share, you might be experiencing unplanned/unnecessary costs.
3. Eliminate low-value meetings, especially in the case where your employees are proficient in their tasks and know what is expected of them.
4. Work on improving your top manager’s leadership and sense of productivity. Make them margin freaks v cost increasing your team’s productivity.

Shifting mind-set of employees from a growth economy trend to a more challenging or in a recession mode will need a medium to long process transformation, while consistently focusing on important and clear objectives set by the CEO and the board of directors.

If what you were doing yesterday was working fine, what about tomorrow?

A successful company is the one that works on operational optimization, through the implementation of strategic planning and simplicity. Your human resource should be a central part of your strategic plan because it is your most expensive resource and you need to take care of it to beat the competition.

In a business environment where 55% of employee lack basic skills, and where today education has become very expensive i.e. an example of an increase in cost in the UK Universities from 0 -GBP12,000 over the last 2 years, will make companies face shortage in talent and organisations will be forced to invest internally in their adult learning.  Companies must have a long-term consistent strategy of building capabilities, which means long term and more work.

Will you be able to cut costs in other areas while investing into the essentials?

• Better customer centric organization
• Better leadership at the C level management
• Increased inefficiency and sales
• Improved skills when up-selling and cross-selling to other of your products and services

When it comes to the choice of removing unnecessary cost and driving revenue, a good management vision and a clear understanding of medium to long term organization objective is a success factor in itself.  Smart companies should be focusing in maintain their margin, and their positioning as a leader while removing unnecessary cost.  This will definitely lower the risk of losing business to the competition and making sure to give long life to their organization.

How does it work in your business? And what are the elements that will challenge you to reduce cost and drive revenue.  Send us an email.