The essence of cost control is not in reducing costs, but in preventing them. It is essential to understand that a company's economic efficiency depends on its structuring. Always remember, the essence of cost control is not in reducing costs, but in preventing them. Costs arise constantly, so their prevention is an endless process. Regardless of how well-structured a company is, its economic efficiency should be reviewed repeatedly. Even with strict cost control, all processes and operations must be carefully analyzed for their necessity every few years. Such an organization of work ensures that all personnel participate in cost control. Employees should see this process as an opportunity, not a threat. If cost control results only in cuts, employees will perceive it as a threat to their jobs and refuse to support the initiative. But if the goal is to prevent unjustified increases, employees will support such an undertaking. TIP OF THE DAY: Review all processes and technological cycle operations of your company every 2–3 years.
Continuous Cost Control
Collect this post to permanently own it.
Subscribe to october91 and never miss a post.
#social