MONEY
to be evaluated for effectiveness, it is essential that o Focus on cost savings for prospects
your organization continue to invest in marketing.
Without continued investment, your customers will
o Improve relationships with current
not be able to find you. In downward economic
clients
cycles, it is likely that your marketing message
• Reduce costs to improve profitability
will need to be adjusted to one of cost savings
and value. Finally, to ensure stability, take time
o Manage staff costs
to improve and enhance your relationships with
� Right-size staff
existing clients.
� Scale back non-core, lower
A stable or growing top line will allow you to make
value benefits programs
meaningful changes to your company’s total cost
structure to improve profitability. It is likely that
� Reduce or eliminate bonus
your company’s largest cost is related to its most
programs and salary increases
valuable asset, its people. By understanding your
o Implement a LEAN program to
company’s operating metrics, you will be able
eliminate waste
to make the necessary changes to “right-size”
your staff. Once the necessary adjustments have
� Eliminate tasks that do not add
been made, it may be necessary to make further
value
adjustments related to non-core benefits programs,
� Reengineer and streamline
salary increases, and bonuses.
wasteful processes
As part of any “right-sizing” effort, it is important
� Convert non-core fixed costs
that an organization review its processes and
to variable costs through
procedures to identify and eliminate waste. Waste
outsourcing initiatives
is simply defined as anything you are currently
doing that your customers would not want to pay
The changing markets require that you change
for. Organizations that do not eliminate waste
with them. Companies that understand their
routinely and systematically will find that waste
financial and non-financial metrics, strengthening
grows as the company grows.
their balance sheets and managing their income
statements, will find a path through these difficult
Manage Your Income Statement
times and position themselves for growth during
• Improve your top line
the recovery.
Ted Rose is the President of Rose Financial Services, based in
o Keep investing in cost effective
Rockville, MD. If you have any comments or questions, he can
marketing be reached at info@rosefinancial or 301.527.1130.
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