Concentrating On The Payroll Only Overshadows The Real Potential Of Significantly Reducing Other Variable Costs!! — #57
This is particularly true in manufacturing as material costs and outsourcing have become significant cost items.
But growing companies may be bound to have cycles that require cost cutting therefore a Plan B for the adjustments should be part of the culture. It is most helpful to have a way of anticipating when a serious slowdown or downturn will occur as I have seen when it is finally recognized changes are needed, it is already too late.
Reducing people as needed can be an emotional experience and it is easy to find reasons for delaying the action for doing it: therefore when the action is identified, DO IT.