CFOs plan to pare payrolls by any and all means available to them.
Kate O'Sullivan, CFO Magazine
December 1, 2008
Businesses should reevaluate operating structures and the current business model, rather than merely cutting employees; moreover, shareholders should more closely scrutinize and potentially sack executive managers whom so readily go for the ax. The rank and file employee did not have the authority to prepare the company on a strategic level for an economic downturn. Businesses should focus on reducing wages/benefits across the employee and executive base, rather than cutting headcount, during tough economic times. The ends do not justify the means.
Posted by E Mendez | December 08, 2008 09:57 am
Most well thought out strategic thinking would focus on growing revenue and let someone else review opportunities for expense reduction on a gain share model. We see many organizations focusing key management time on cutting travel and headcount instead of focusing on growing revenue and market share. Many organizations are still integrating after an acquisition(s)many functions. It is amazing the amount of focus on the quick fix of cutting staff, or travel plans, while many areas of recurring expenses could be lowered to minimize the staff cuts needed. We see many companies with opportunities to grow revenue, but focus on short-term fixes which leave them very vulnerable to demise, unfriendly takeover or even lower margins and profitability issues.
Posted by Patrick Driscoll | December 02, 2008 12:01 pm© CFO Publishing Corporation 2009. All rights reserved.