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  Newsletter :   Cut Costs, Not People   Posted Date :   7/13/2005 12:00:00 AM
July 2005 Business Made Simple
Corporate Toolbelt Newsletter
In This Issue
 

An Opinion - Service? What Service

I wrote about this subject recently but sometimes when things get 'stuck in your mind' you just have to get it out!

I was working on my website due to a series of problems processing credit card transactions. It wasn't my website that had the problems. No, it started with the card company itself.

Various transactions were getting rejected despite being perfectly valid. Upon contacting this 'fine' establishment, Signature Card, I was told that my contract did not allow for certain types of transactions.

Upon review, I could not find any restrictions and recontacted Signature. Now, the problem was a new one. I had been 'misinformed' and the problem was due to a policy that was being enforced due to the size of the transaction.

Upon review, I could not find any restrictions and recontacted Signature. Now, I was told that I had been 'misinformed' and I had to change my contract to ""fit"" my customer's profiles. I could not find anything stating anything about profiles and restrictions relating to them.

Upon contacting Signature again I cancelled my service and was told I could not do that because of the contract length, one year. You guessed it, my contract was month-to-month! I think they have set a record. Everyone I have talked with has told me something completely different!

Unfortunately, the story does not end here. Upon signing up with Paypal I ran into an error message with the very first transaction! It would not get processed. I contacted Paypal and they told me it was the shopping cart, 1ShoppingCart. Of course, I contacted them and was told it was Paypal. Oh Boy, what fun!

If not for my wife's dogged determination I do not think either firm would have even acknowledged the problem much less fixed it. She kept working up the ladder and as she did so actually came to understand the entire system, over hours of time mind you. Eventually, she not only reached the tech management of both firms but was able to explain to both exactly what the problem was - - with their two firms information exchange! Then, and only then, did the problem get resolved.

I guess I should give up preaching about customer service. I have this incredible frustration with so many companies being unable to service their customers. But, I have this incredible optimism that some how, some way, things can be done better and faster. One last question, why is it that a customer service department has no ability to call their customers that they disconnected while trying to transfer them to another department? Is it too much to ask to not have to go through the entire process just to get back where I was 15 minutes before?

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Welcome to my July Newsletter! I am sure you will find the information and insights make your life and business more productive. Let me know how I can help you!


Cut Costs, NOT People

Restructuring, Retrenching, Consolidation, Focusing on Core Competencies, Mergers, Maximizing Efficiencies, and Acquisitions are the bywords of corporate America today. What are they always equated with? Massive Layoffs followed by rehires, more layoffs, more rehires and so on.

Why?? The 'path of least resistance' is the perceived 'fastest end to results'. Our insatiable drive for quarterly results has blinded us from long-term thinking. But this should not and is not the most effective solution in many cases.

A survey of manufacturers by the Nat'l Association of Accountants found that labor costs are often overestimated as part of the cost of a product. Cutting costs does not need to equal cutting people. Indeed, there is a long list of options and actions management should take prior to firing people but most companies only explore 1 or 2 of them.

Some obvious options are:

  • launching new products & services
  • changing the way work is done
  • enhancing the core businesses
  • retraining employees for new roles
  • redeploying employees
Does this mean there will be no layoffs or reductions, probably not. But, the cost of recruiting, hiring and training new employees is almost always greater than other alternatives. And, this new hire cost comes on 'top of' the layoff packages often given to accelerate the reduction process. Worse yet, the layoffs are almost always too great in number, too aggressive.

Even employees who are retained begin to leave in large numbers in anticipation of the next round of layoffs. This if often the ""beginning of the end"" as the talent pool shrinks rapidly within the organization and even those 'outside' the organization become wary of joining it.

A local example is Gateway. Massive layoffs have been followed by new spates of hiring. Talented management has left voluntarily to avoid the next cut. New hires are being screened and hired by employees with less than 4 weeks on the job themselves.

What can the future hold? Probably the positioning of the company for sale or its eventual collapse. Survival is the least likely result.

So, before you lead your organization through its next series of layoffs, ask yourself, ""Have we explored all other options, all other possibilities?"" Your answers could determine your organization's survival!!

Contact: steveburgess@ichoose2be.com for further information and an initial discussion.

If you found this newsletter to be of value please pass it on to others. Your email address will NEVER be sold, rented, borrowed, leased, become part of a debenture, well, you get the idea!


Steve's Speaking Schedule

On Thursday, July 21st, I will be speaking to OCEN (Orange County Executive Network) at their breakfast meeting to discuss ""Career Networking Strategies"". The event is being held at the Sports Club, Irvine at 7:30 am. Cost is $35

Future Engagements:

American Association of Senior Executives, August 25th, 7:30am at the Sprots Club, Irvine

Author & Book Marketing Conference, September 2005 and many, many more

Need a speaker for your event? Contact Steve: steveburgess@ichoose2be.com -or- call (949) 831-7136

Added Note: Stay tuned for information about a NEW Speaker's Agency representing top quality speakers at affordable prices for the southern California area! I am co-founder of Speaker's Alive, Coming Soon!


Publications - Now & Later

Stay tuned for the release date of my co-authored Business Successes tentatively scheduled for Fall 2005 and The Enlightened Path around January 2006

And, my own book Leadership Lessons Learned continues to move forward while exploring agent/publisher options.

If you have thoughts or comments or wish to see a particular topic discussed, please contact Steve directly at: steveburgess@ichoose2be.com


 
 
 

 

 

 

 

 

 

 

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