Companies. In its haste to reduce the activities of the federal state, the new American administration has without hesitation all the officials loaded … nuclear weapons! Once the fault is discovered, it only remained to get them back as quickly as possible …
Does this extreme behavior result only obsessions professor emeritus of anti-state ideologists? To tell the truth, this type of absurd errors threatens the brutal strategies of “cost killing” (cost hunting), because they are most often exercised in an emergency, blindly, and in organizations that transformative agents know badly.
Cost reduction or operation of operation are banal improvement procedures. But they must be implemented under constraints of quality of service and consistency. Quality of service, because it would be absurd to want to increase its profits by fleeing its best customers or reducing public debt by defeating the state. Coherence, because it would be counterproductive to reduce certain costs without taking into account the losses that this causes elsewhere. However, respect for these two constraints requires both a good knowledge of the professions concerned and constant vigilance in the face of the unexpected consequences of the actions undertaken.
On the ground, we are often far from such prudence. The drastic “Cost Killing” strategies are imposed by new management teams or new governments which promise, respectively, the rapid return to high profitability or major budgetary savings. Agents who drive these strategies do not have the necessary skills and must act, at least in part, blind.
Unexpected losses
Hence, in practice, the frequent use of uniform budgetary reductions or cuts that focus on activities that are believed to be less visible, less defended or whose deleterious effects will not appear immediately. Often, these strategies are based on consultants, but this requires that they already know the activities to be transformed, otherwise they could be just as disadvantaged as their sponsors.
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