In some cases, these reductions have been done in thoughtless ways that may improve results temporarily, but hurt the business in the long run. More thoughtful restructuring, however, can be accomplished by refocusing the firm on the Key Sources of Competitive Advantage. In some cases, employee cutbacks may be unavoidable. But it misses the point to say that profit improvement occurred simply through cost reduction at the price of human misery. Savings can be used for new product development, research and development, improving distribution systems, etc.
Strategic investments improve productivity.
Copyright 2001, Easton Consultants. All rights reserved. Send us feedback . No part of this material may be reproduced, translated, transmitted, framed, or stored in a retrieval system for public or private use without the written permission of the publisher.