Leader's Compass 31 - Running Lean - How Managers Can Creatively Cut The Fat WithoutCompromising Quality

All too often we think more is better. Recently I've read about how some retailers are finding thier revenues down and are needing to "trim the fat" through better expense management. Although most companies and many people personally have had to cut back on spending when times are tough tightening the belt a bit can be a helpful reminder of what is important. Below are a few helpful tips.

1. Always invest in training and development. It's been said that a great leader knows more about his assets than his liabilities. This does not mean that the leader is a fool that ignores expenses, but that they look for, see and understand the depth of the assets in his possession. Spending time with and training the team you work with can have a massive effect on your overall cost savings. 

Better trained, more developed people are able to easily do more without becoming burned out and overwhelmed. 

2. Maximize individual strengths. A solid manager will take pause and look from both a long term strategic and short term tactical perspective what strengths in her individuals are best utilized where. People that are maximizing strengths in thier day to day are happier, more productive and more effective as well. Putting the right person, with the right talent and skill in the right job is the first step toward success.

3. Don't forget the fine toothed comb. Doing a thourough search for company fat - programs that are not producing, projects that are unproductive will always be found through a detailed approach to the financial statements.

4. Commit to killing sacred cows when necessary. Every company has no shortage of sacred cows. Perhaps it's the idea that the CEO loves and everyone has followed despite its eventual ineffectiveness. Maybe it's the cultural shift made by the entire corporation in an effort to improve an area but instead created more redundancy in the business. 

When cutting costs effectively it's important to go into the process with the commitment to kill any sacred cow that is no longer serving the company needs.

5. Finally - never sacrifice the customer experience. Experience is what keeps us coming back to a retailer, a restaurant, hotel, health club, or any other service business. Sure, competitive pricing is great, but if history has taught us anything about business the experience consumers have is paramount to the company's long term success.

See from the customer point of view and never forget that intelligent consumers can see when you are trying to save a buck at thier expense. Don't fool yourself into thinking you are fooling them if one of your cost cutting measures puts customers needs on the back burner.

In the end lean times can create better efficiency and effectivity if done properly. Cost cutting is a sharp sword that if done too aggressively and without the velvet hammer approach can alienate employees and customers alike. Done well however it can be a great lesson in leadership, team building and loyalty creation. Plan well and lead on.