When Cutting Costs, Don’t Lose Sight of Long-Term Organizational Health

After three years of adapting to disrupted business conditions due to the pandemic, the aftermath of inflation and fears of recession have leaders scrambling to get budgets in line with slower revenue growth. Riddled with the anxiety of making the wrong choices and having to deliver tough news, leaders are often prone to making short-sighted decisions when cutting costs. And when it comes to sustaining the intended outcomes of cut costs, most organizations are abysmal. Rather than grasping at straws or doing what seems “least painful,” these are the turbulent times when leaders must double down on protecting the long-term aspirations and culture of their organization. If you’re facing the need to tighten your belt, the authors present several ways to trim costs — without sacrificing the long-term health of the company.