Is cost reduction a four letter word?

Yesterday I had lunch with a CIO of a large London based business. He was pleased with some recent savings Silver Bullet Associates had helped him obtain during a negotiation with a large database vendor and had been in touch with a business colleague in another firm to recommend my services. He was surprised to be knocked back with a comment that ‘we don’t want his sort in here’. In asking for clarification, it soon became apparent that ‘cost reduction’ had become a four letter word in his colleagues’ business after a large well known IT consultancy company had recently promised the earth and delivered nothing but a huge bill of their own. Unfortunately, this happens more often than you might think as many buisnesses get embarassed when expensive consultants fail to deliver cost reductions and so cover up the  short-fall with bluster about ’uncovering intangibles and adding value to internal processes’ etc. At the end of the day, the only real measurable is how much cost was reduced or saved. So yes, maybe cost reduction can be a four letter word, so long as the word is ‘save’.

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2 Responses to “Is cost reduction a four letter word?”

  1. I really liked this post. Can I copy it to my site? Thank you in advance.

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