You can try to do this by stating clearly your intention to focus explicitly on non-staff costs. By targeting these expenses, people and their livelihoods will not be put at risk.
Sometimes you don’t have to lay off people
Savings can be achieved even without reducing headcount. For not-too-big cost-cutting initiatives, this should be the goal. Such an approach will foster support across the organisation since no one will feel threatened.
To craft a solid plan for your cost-cutting efforts, consider the following points:
Goals: Answer some key questions:
- Is cost-cutting the result of an internal decision, or is it being forced upon you by lenders or shareholders?
- Does management see some functional areas as having greater or lesser significance in terms of strategy?
- Are the necessary savings to be net of one-time expenses?
- How about the timing of the cuts?
Structure: To drive lasting change, you need to have a thorough knowledge of the cost structure. Be prepared to go into detail. You should also consider various perspectives: what is waste to one person may be viewed by someone else as of essential importance. In order fully to understand the structure, ask why the money is being spent.
Alignment: A laser focus on numbers is a route to failure. You must also look after relationships inside and outside the company. Discuss preliminary findings with other managers. Set up a transparent process. Share your thoughts and impressions. Invite suggestions. A debate will turn out to be advantageous to your efforts.
Implementation: A good plan must be actionable. Cost-saving opportunities must be found; however, you also need to define the steps which will lead to actual savings, according to an article on the cfo.com website.
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