Many companies have cut costs. How to reduce strategic, without the business suffers, read here.
The Entrepreneur Magazine Harvard Business Manager provides tips on how to reduce an entrepreneur or head of department your costs by ten to thirty percent:
Events consolidate
Check out where you can combine activities such as corporate parties, event tickets or paid training. If you target events with other departments together, save such as costs for venues or trainers.
Costs: personnel actions implement
Overload underemployed workers better. Announce consistently employees whose performance lags behind the requirements permanent. Let us not with pity or side effects such as a protest influence of the department. Perform appropriate new job descriptions to identify the best qualified candidates.
Reduce line costs
Reduce budget for control and coordination of departments that do more or less the same tasks in the year before. Rule of thumb: the working hours for inspection can be for each year by around ten percent, to stay in the tasks of the department largely the same – provided that the turnover is low.
Lower ‘other’ costs
Stationery, telephone or computer costs: In almost all can be reduced by various expenditures by 15 to 20 percent.
Costs: salary increases to keep low
Find out where your employees are in the same sector. Are not salaries below the average, and then hold down the increases clearly – at about one to two percent below the company-wide average of the previous year.
Savings proposals re-submit
Suggest measures after being rejected in front again, the cost increase productivity. Perhaps the concepts were rejected only because of bottlenecks or other priorities.
Cost Object Check
Break down the cost of various tasks as much as possible, for example, by region and product line. Check for each task, whether the expense is justified. Brush depending on the results as coordinators or go back covered service.
Reducing costs: processes adapt
Regularly check the internal management processes: Where are decreased requirements? Where manual processes have become obsolete? Where can eliminate high exceptional costs? Where you can save through better timing?
Thinking from the security pass
Check out where you can reduce precautionary measures: Put a lot of money to make provisions for unlikely events? Where in the past five years occurred at all, such a case? Such an event would indeed be embarrassing, but not very expensive?
Parallel activities to rate
Do you agree with various departments and processes from one another better, to negotiate about the purchase of office equipment, better prices. Co-ordinate the business of your employees to get higher discounts on hotel chains.
Costs: outsourcing tasks
Check whether you can outsource internal functions cheaply, such as payroll, compensation management, recruitment or media planning. Outsourcing can reduce overhead costs significantly while improving performance.
Eliminate duplicate analysis
Often, transactions are checked twice, if several departments are involved. Think about how you can combine such analysis – for example, by only one department analyzes the event and it includes information from other departments.
Inefficient meetings underline
Up to one fifth of the working time is spent on meetings. Think about how you make your meetings more effective, such as through better preparation, wound or strike.
Reducing costs: Department Cross-think
They also shy away from fundamental changes not back. Simplify if necessary, for example, the procedures for interviewing candidates, for personnel selection and performance reviews.
Programs emphasize
It also brush entire areas of responsibility and programs if they are unprofitable – or if their profitability at the company-wide average.
Reduce stress
Check if a department in the company of other preliminary work with excessive effort. If necessary, reduce the performance.