Friday, October 30, 2009

A Better Way to Cut Costs

McKinsey Quarterly just released this study. It makes too many salient points for me to summarize it here. Effective cost-cutting starts by rejecting the thought that cuts have to be across-the-board.

"[Companies should start any cost-cutting initiative by thinking through whether they could restructure the business to take advantage of current and projected marketplace trends (for instance, by exiting relatively low-profit or low-growth businesses) or to mitigate threats, such as consolidating competitors."