Launch a Cost-Reduction Bandwagon
WHEN CALGARY’S CIRRUS ENVIRONMENTAL SERVICES asked for input on ways the company could cut costs, everyone, from admin personnel to senior project managers, got involved. They had a reason to. In quarterly meetings, people would vote on which ideas should be implemented. The idea’s architect received $300. The result? The company dramatically reduced the plastic waste generated in the field by reusing materials and the shop was reorganized, which eliminated the need for costly rented storage space. “Sometimes you need another pair of eyes,” says president Greg Whyte. Here’s how (and when) to use them.
Ask for input
Lisa Holden Rovers, the principle of Workplace Matters, worked in human resources at a manufacturing company during a period when it was cutting to the bone, even reducing the paper towels used in the lunchroom. Employees were asked to suggest their own cost-reduction ideas. “It was very effective, because there was an expected goal, and that was reviewed quarterly; that goal trickled down through each department at monthly employee meetings and people were held accountable in performance reviews,” Holden Rovers says. Its effectiveness was based on layers – accountability for the company as a whole, within each department and with individuals.
Don’t ask for input
Ask yourself: does the janitor really give a rat’s bottom if the company saves money? He may not. “I’ve had projects stumble because we’ve tried to be too inclusive with a workforce that didn’t want to be included,” says Tim Sweet, principal of Calgary’s Revolve Consulting. “While desirable, collaborative learning is not efficient when you’re axing staff and people are just concerned about making rent…. You can’t involve the employee if there is no incentive for the employee.” Find incentive, or don’t involve them.
Map your course
A painless way to get employees involved is through a process map – essentially, a visual reminder of how the company produces its widgets and who does what when. “The map will help people see potential overlaps, timing gaps or areas where two people are doing the same job,” Holden Rovers says. An added bonus: this is one cost-reduction initiative that may reduce workload.
Balance Value
Nobody likes a skinflint, so removing the office coffee pot is bad idea. If you have costs that are superfluous but valued, you must weigh the benefits versus the cost. (That includes cost to morale.) Don’t spend time and money implementing piecemeal changes.
Employ Shock and Awe
Nobody likes change. What they like less is a wussy boss who continually upsets routine by announcing changes in dribs and drabs out of concern that people won’t like it. If the company must institute a large-scale strategic change that will require extra effort from staff (as change almost invariably does), proclaim the plan and tell people what you expect. “Most of the time, you’ll be asking people to do more work for the same paycheque or fewer hours for a smaller paycheque. It’s a conflict of interest,” Sweet says. They’ll find it easier to get on board if they know the end goal. Once the strategic plan is in place, ask for their input on an operational level if they have demonstrated improved efficiencies.
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