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Sustainable Cost Reduction (Repeated in #21)


‐ Jul 20, 2010 12:45pm


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Traditionally, companies were pressured to cut costs in the short term without fully considering sustainable change, the impact on their people, or alignment with the overall business strategy. These efforts typically begin with soliciting cost reduction opportunities from department heads and end with under-performing results, poor spend control, and longer lasting harm to the organization. In many cases, the cost savings achieved in the short term will eventually leak away and the cost base returns to the previous high levels, but with considerable damage to the corporate structure, image, culture, and morale. Today's leading edge companies are looking beyond the short term as a means of eliminating and controlling costs through sustainable change.

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