THE HIDDEN COST OF CUTTING COSTS
In hope of spurring a
useful conversation, I'm sharing something that has been on my mind a lot
lately.
Along with all of the
trimming of resources (people and dollars) that are occurring, I see so many
hidden costs. Reorganization efforts are implemented one right after another,
and people never get acclimated to a new role or place. What does this
disorientation cost? People quite naturally protect their "turfs" and these
tensions between individuals or groups are never resolved. What does this
protectionism cost? Goals are in contradiction across parts of the organization
and alignment is never addressed. What does this misalignment cost? Trust
doesn't exist up and down and around the organization to support the flow of
desperately needed new ideas or information. What does this hesitance cost?
Key talent leaves and no one is able to fill the role(s) due to
diminishing investment in training, development and coaching. What does this gap
cost?
posted by Intruequest Idea Exchange at
1:04 PM
2 Comments:
Great points! There's a lot more to having the right resources (and the right mix) than just the bottom line.
Thanks for your timely post. I read it with considerable sadness because many of the thoughts you shared resonates with the reality in my organization (work place). Turf tussles; protectionism; misaligned goals; deep seated suspicion or complete lack of trust which invariably stifles new ideas and growth; juicy early retirement packages given to staff who leave abruptly with no proper succession planning in place; endless learning curve for new entrants; need I go on?
All of these really trigger in my mind, a picture of deteriorating standards or quality. For a huge organization such as mine with over 10,000 employees worldwide - that is definitely a huge hidden cost. A cost which could subtly and quietly erode its reputation over time if not addressed promptly.
Thanks for flagging this food for thought. I think it is time to let down the silos, think of the longer term, think continuity and sustained effectiveness, align the micro with the macro - the hidden cost has now become an elephant in the room that must not be ignored.
Post a Comment
Subscribe to Post Comments [Atom]
<< Home