COST REDUCTION IS A TEAM SPORT

No matter the size of your organization, driving change must be a team effort. Even if YOU believe a cause is worth your effort, unless you gain the support of others, you'll be fighting an uphill battle.

However, when you have a team on your side helping to promote, enforce, and drive that change; you will see results. To reach goals and achieve success, everyone — and we mean everyone — needs to be on board.

Everyone is Accountable for the Success of a Change

Cost reduction has always been a team sport. No one person, whether it be the CEO or a manager, can do the job alone. It's not just up to the Finance department to control business costs when every person in the organization is contributing to them in some way, shape, or form. Every employee in every role needs to be accountable for keeping costs at a minimum.

There are several strategies you can use to enhance cost saving initiatives. One that's particularly effective, especially in telecom and IT, is to reduce, reuse, and recycle!

Cost Reduction Strategies

Strategy requires the collaboration of a team or entire organization to see great results. When it's applied to cost cutting, it's pretty straightforward:

  • If you're buying something, shop around. The cost of products/services vary from one vendor to the next. Shop Around! If one price is too high, move on to the next one. You'll eventually find the product/service you need at the price you’re willing to pay.
  • If you're using something, use it less. This is a simple step in the process. Expenses like long-distance calling can quickly add up. Replace them with emails and skip the extra charges. Only dial when verbal communication is a must.
  • If you want something, ask first. .  New equipment or new technology for an entire organization is costly. It’s common for any business to work to extend the lifecycle of equipment far past its normal working period. If you're tired of using an old, outdated computer, there's no harm in asking if a better option is already available inhouse. If there is, you've just saved the company money.
  • If you have something you don't need, offer it to another colleague. Sometimes we get extra devices that just end up sitting in a drawer or on a desk. Do you have two company-issued mobile devices kicking around, but only use one? Unused hardware is an untapped resource. Perhaps another in your organization would see your old phone as an upgrade; and their old device could be sold to recover some cash? At the very minimum, it could be recycled and kept out of the landfill.   

The reduce, reuse, and recycle strategy  is very valuable in Telecom and IT, as these categories are notorious for ballooning business expenses. Prices on hardware and service should always be negotiated. Employees should be mindful of their usage (data streaming, texting, etc.) in terms of the cost to the business. Phones are constantly upgraded without a proper disposal/recycle plan, and inactive lines can be reused prior to the activation of new lines.

It takes a village to raise a child, and it takes a team to achieve cost reduction. When you get everyone onboard with the reduce, reuse, recycle strategy, you'll meet your cost reduction goals.