Expense is the piece that is most often attacked in a Cost Reduction Project (one-time) or Process (ongoing). Everyone is often told to cut back until it hurts and then cut some more. Cost reduction hits the national business news on an almost weekly basis as big name industries announce across-the-board cuts of 5, 10, or even 20%. People usually get the short end of the expense reduction stick and the implications are wide ranging and severe. Studies consistently show that across-the-board personnel cuts do not lead to long-term corporate success.
The Profit improvement Process (PIP) is effective because it focuses on loss and revenue in addition to expense. Everyone in the company is engaged in a positive approach toward building a stronger and more profitable company. People win with a PIP.
The Profit Improvement Process (PIP) identifies, quantifies, and prioritizes the areas of excess expense that your business is experiencing. Priorities are addressed to increase profits. Key points about expense management include:
Achieving World-Class Profit Improvement: See the world-class profit improvement processes. A must-have resource for any cost reduction practitioners.