When developing your innovation agenda, bear in mind that employees deal with inefficiencies in your company daily, often having diverse and powerful ideas related to organisational processes and products. They also have opinions and insights concerning the areas and processes in which it could make more sense to cut or to invest.
Top-down approaches sometimes bring your initiatives from micro level to macro level, relying on transformational opportunities to reduce costs. Yet they do it without looking at the whole picture, unable to identify the real inefficiencies, unable to create a sustained way to drive costs and to change inefficient spending behaviours.
You can save time and money by having your employees contribute ideas for the cost-cutting strategy, as well as cost-optimisation ideas that can transform and impact the company positively.
Any ‘reductions’ or ‘cuts’ should aim at building a more robust organisation, in search of innovative ways to redefine itself. There are limitless options according to your reality. Have a look at some sample results from customers who incorporated a cost-cutting strategy in their innovation agenda:
- By selling obsolete stock items to employees interested in buying them, an organisation generated a new revenue source and freed storage space, allowing a much more rational use of space;
- A client was able to streamline its customer support call centre efficiently, improving service quality and vastly reducing the number of calls received by the customer service department, simply by adopting different colours for cables, routers and set-top boxes;
- They also saved €2M with a new, eco-friendlier packaging system;
- Another client embraced distribution of administrative documents by bike, a cool and eco-friendly idea with significant results: by replacing 30% of the motorcycles with bike couriers, distribution costs were reduced and almost a ton of CO2 emissions was saved in just seven months.
STEP 3 advises you to invest more on a bottom-up approach, calling on people’s knowledge and experience to help you separate the wheat from the chaff and find concrete and innovative solutions, mainly at micro level.