3 ms·
I wonder what sort of structural change we'd see if there was executive level bounties for cost savings? For example: You get a bonus of 10% of whatever budge
by RajT88 4y ago
I wonder what sort of structural change we'd see if there was executive level bounties for cost savings?
For example: You get a bonus of 10% of whatever budget you manage to trim.
You'd have to balance your greed against your desire to continue to have your organization function well.
- margalabargala 4y agoThat would look like the mass layoffs of the sorts of people whose job is general preventative maintenance, or who are employed at higher cost due to their knowledge. Generally the sorts of things that reduce short term costs immediately, while causing much larger pain in some not-right-now future. For real-life examples of this, see many private equity buyouts.
- Analemma_ 4y agoThat would be a disaster. People would earn those bonuses with things like cutting R&D, making people work more hours for the same pay, and neglecting maintenance/repair, which all show cost savings in the short term and run the organization into the ground in the long run. As attractive as it is to think there's a quick-and-easy solution here, there is not. It requires constant vigilance from quality leadership to fall into neither the trap of bloat nor the one of foolish cost-cutting.