In a Downturn, Include Your Employees in Cost-Cutting Decisions

Democratizing the collection of data and recommendations allows leadership teams to gain a much clearer picture of activities and initiatives underway within their organization. It also offers a more detailed lens through which they can evaluate which activities are the most valuable to achieving strategic objectives and which ones can be automated or managed in a shared services environment — or ceased.

When leaders take this bottom-up approach, we have found they not only cut costs significantly but also realize their goals more rapidly because managers and employees are motivated to help. Changes are then also more likely to stick.

Below, we recommend focusing on four different types of information:

1. Key routines and projects.
2. Effort required.
3. Strategic priorities.
4. New operating model ideas.