Fiscal fitness. Part 2

Decide on a time frame. Are you going to make cuts immediately as in a crisis situation or over a longer period, such as a few weeks? Clarify what areas will be affected. Targets may be set in specific areas, such as a reduction in maintenance costs by 10 percent, or may encompass all areas, thus, involving everyone in the facility.

Decide how to cut and and then develop your cost-reduction strategy. Make a list of who you need to contact (i.e., vendors) and what you plan to say. Will you give them an opportunity to match the better deal of a competitor, or do you consider your business finished upon expiration of the current

The most important factor to remember about the cost-reduction exercise is that someone must have the authority or be empowered with the authority to implement the measures of change, however unpleasant they may seem. The quality of any business or organization is based on its focus rather than individual programs and services. The people who have the authority to enact change must be focus-oriented.

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