When charged with cutting costs, CFOs can garner organization-wide support and get employee buy-in by first looking at the company’s cost structure and assuring employees that non-staff costs will be targeted instead of job eliminations.
A successful cost reduction plan includes several elements. A detailed understanding of the company’s cost structure, knowing what is spent and why, and identifying areas of inefficiency all can help CFOs set realistic goals. Discussion with the management team and transparency with staff can help define success.
A careful approach to the cost-cutting initiative can spare the organization from drastic consequences by achieving savings without reducing staff.