#Immediacy on speech making

Make a new list of cost elements, starting this time with the ...

Make a new list of cost elements, starting this time with the biggest item and then proceeding in descending order of size. At the bottom put 'minor items' to represent those crossed off.

Put two vertical lists alongside, one for the budget expenditure for each item, and the other for the percentage of total budget. Fill in the expenditure and percentage for 'minor items: which should restore the totals as before.

It would be ideal if we could forecast the percentage saving which each item is likely to produce before doing the investigation, but this is not an ideal world. To be realistic, therefore, make a fourth list alongside and against each item write 'high', 'medium' or 'lows' according to your best guess as to whether that item is likely to produce a high-, medium- or low-percentage saving.

Now pick out the first five items you will investigate.

This may be the first five items on the list, but if one or more has a low' rating you may feel that some of the items a little lower down offer better prospects. It is important that at least one of the first items you choose produces favourable results quickly. Such a success is a great boost to the enthusiasm not only of the investigators but of all the staff.

Another aid to maintaining enthusiasm is to publish progress reports at least once a week. Cost controls When you launch your cost-reduction campaign you should at the same time start cost controls, as was illustrated by Tony's experience above. The first controls will be rather arbitrary and their main purpose is to reinforce the 'short, sharp shock'. They will, however, highlight a number of topics for investigation which might never have occurred to you For instance, you will probably find that your staff have great difficulty in producing one or two controls which seem quite straightforward to you Has no one been paying attention to this cost element before? Other cost elements may be much higher than you realized. As your investigation gets under way, you will gradually scrap some of the original controls, because they are unnecessary, or change them into another which is more effective or is easier to compile.

It is not enough to reduce costs you have to keep them ...

It is not enough to reduce costs you have to keep them reduced. The opening paragraphs of this section describe how inefficiencies creep into any business, no matter how eff... read more

It is doubtful too if you could sustain such artificial behaviour for ...

It is doubtful too if you could sustain such artificial behaviour for any length of time If you are normally on friendly terms with your staff, then no

lf you announce that there may be compulsory redundancy, you may get ...

lf you announce that there may be compulsory redundancy, you may get less co-operation in your study.

But if you have previously had good staff relations and handle the matter