Leading Business March | Page 5

The Third of Twelve Tips to improve business in 2014 By Hank Kreutzinger, Expense Reduction Analysts Elkhart Thursday March 27 11:30 a.m. to 1 p.m. Lerner Theatre A unique event aimed at Inspiring community involvment and creating the change you want to see in Elkhart. Speakers include: Steve Germani - Ideas to reality: Create what you want to see in Elkhart Amish Shah - Entrepreneurial spirit Brian Boehler - Robotics Charrise McCrorey - Life coach Bill Firstenberger - Culture and history Nicole Bauman - Community space Steve Gruber - Arts in Elkhart Jonathon Geels - 100 Ideas Project Flavor 574 Team - Foodie happenings Each has three minutes to tell their story and Inspire Elkhart. Register at Elkhart.org Cost cutting continues to be a necessity for most organizations, and often the attention turns first to reducing internal staff. While effective in lowering costs, this solution leads to a new set of challenges. All too often, the work effort from many becomes the workload of a few. Executives begin to look for ways to make certain fewer people are doing all the right things, often resulting in non-core – albeit a large volume of essential – activities becoming tomorrow’s business. These activities will receive less attention and may become unintentionally idle, abandoned or postponed until tomorrow. The challenge is often stated as, “We lack the time, the tools, and the talent to address all the In short, they are embracing a non-labor, contingency-based approach to cost reduction as a key component in strategic financial plans going forward. Once an organization is committed to this process, they are often hamstrung with how and where to begin. Are there relationships, possibly unstated, that potentially impact making a change or even exploring improvement? Can the organization afford to undertake this effort? Experience has shown that typically the organization cannot afford to not undertake this approach. Again, “we don’t know what we do not know,” but we are seeing on average savings of 18.5 percent against the client’s All too often, the work effort from many becomes the workload of a few. Executives begin to look for ways to make certain fewer people are doing all the right things, often resulting in non-core – albeit a large volume of essential – activities becoming tomorrow’s business. things we need to accomplish.” Developing an internal team with specific industry experience to address the limitless numbers of potential categories becomes a daunting task, as well. This leads many business executives to ask new questions. Are there alternatives to further reducing labor in order to reduce costs? Are there new approaches to address the growing number of non-core expenses in order to reduce operating costs? Many are discovering the answers are “yes,” and they are deploying new approaches to getting more work done inside smaller organizations with fewer burdens and disruptions to the budget and operations. existing baseline expense costs of today. While numerous non-labor cost categories can be addressed, it is not uncommon for the organization to address those that are less obtrusive to daily operations. Energy, taxes and insurance all come to mind as good categories in which to begin this process, but it should and cannot be limited to these. This comprehensive approach should be part of your organization’s strategic financial plan. Analyzing and managing non-core activities is a practical, reasonable approach to reducing costs — an approach that works for virtually every business and industry in today’s fast changing environment. Profit Improvment Workshop Tuesday March 18 | 11:30 a.m. to 1 p.m. | Elkhart Chamber | Register at Elkhart.org