I have certainly learnt over the years both personally and through business experience around the world that companies can’t regain lost competitiveness by just costs.
To rely on incremental cost cutting to be competitive will ultimately lead to an unsustainable future for a business.
In reality, by strategising to just mechanically eliminate chunks of the business to improve the company’s position is a gigantic operational fallacy.
I would argue that the more you cut, the less you have, and the less you have will equate to a less competitive business.
What is required in today’s volatile and demanding marketplace is a new way of thinking that assists a business transcend from ‘Knee Jerk’ overhead cost cutting. This really is short term thinking and can be classified as ‘The Fallacy of the Quick Overhead Fix’
By strategically thinking processes and redefining overheads it will be possible to begin moving towards ‘World Best Practice’ operations where your re-thinking programme becomes a value-adding journey and not just an event.
All of these change programmes require significant behavioural and cultural changes which are best handled by experience outside of your company. Someone who can think outside of the box and are not swayed by internal politics. Someone who has been there and done that. Who relates to people through personal experience and success.