How to cut costs and wreck a business

Here's a great example of classic short-term DUMB management thinking (true story):

The company in question has about 20 employees. They work as a tightly knit team, often depending on each other to get the job done.

One day, management decides a cost cutting initiative was in order, just because. So what did they do? They stopped refilling the biscuit tins. And decreed a freeze on the purchase of birthday cakes.

Now they are wondering why staff morale is low, and moaning about how hard it is to retain key talent.

In one year, the estimated cost of 20 birthday cakes + 200 packs of biscuits come to a paltry $1500.

Save $1500, or wreck a business. Do you really need an MBA to make this decision?

Cite
	Title:	How to cut costs and wreck a business
	Author:	Liew, Zern
	Blog Title:	Thoughts at the intersection of Design, Business, Technology, and Applied Psychology
	Date:	1 August 2005
	URL:	https://eicolab.com.au/2005/how-to-cut-costs-and-wreck-a-business.html