The glory days seem far behind as stock prices fall, retail sales plummet, budgets are cut and global markets struggle. Both businesses and government organizations are looking for ways to dramatically reduce costs, do more with less and basically just survive the economic storm.
Most companies are using what seems to be a logical approach – cut, cut, cut. Cut people, cut budgets, cut travel, switch to lower cost suppliers – anything that results in an immediate reduction to expenses.
But, in essence, these organizations are just starving themselves, and it will likely come back to haunt them as the core infrastructure of the company – the corporate metabolism – is crippled to the point where it cannot function effectively.
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