Ever since the financial crisis started to spread around the world, organisations heavily focused on business efficiency – reducing costs, improving operations and making the best use of assets.
Nowadays, of a more stringent nature than before, many companies realised that they should know how their costs compare to other companies on the market, how operations could maintain efficiency and what opportunities there are to maintain profit.
Here are a few tips on how companies could manage operations during crisis:
- Assess the pros and cons for your business and consider outsourcing if this lets you focus on your core business efficiency;
- Reduce costs through the use of shared service centres;
- Eliminate the activities that do not add value to company business;
- Optimise the supply chain (if applicable) to reduce the procurement cost as well as the cost of supply to customers;
- Analyse the benefits and risks of your optimizing decisions, in both internal processes and external relationships with customers and suppliers.
If you haven’t done it already within your own company culture, now is the perfect time for organisational redesign and working capital reduction. Moreover, as a „lesson learned”, consider maintaining a culture of continuous cost containment, even after the financial crises fades away, rather than damaging the business through periodic cost-cutting intercession.
As a result of the actions above, you may gain a clear picture of your company’s cost drivers and address cost efficient and sustainable improvements. Your focus on people and cultural issues, as well as on processes, structures and technology, could ensure that performance is managed during crisis.