by John Gross
Last month, I challenged you to look past sales and truly understand your gross margin—and the real cost of incremental growth. This month let’s go one step further: managing costs without cutting service or quality.
First, a public service announcement: this is cost analysis, not knee-jerk cost cutting. Switching to single-ply toilet paper isn’t strategy; it’s theater.
Real cost management starts with better questions. Look closely at G&A, productivity, errors and rework, scheduling, overtime, etc. Then ask the only question that matters: Is this expense helping us serve customers better—or helping improve the business?
Your accountant can provide the numbers, but this is a team sport. Profitability doesn’t belong to finance alone. Every leader—and every employee—should feel accountable for how resources are used.
Have each leadership team member break down the costs in their area. Challenge comfortable assumptions like, “I’m on budget,” or “We’ve always done it this way.” (Budgets only measure compliance.)
Need a starting point? Try these:
• Do we really need to print everything, or can digital be the default?
• When did we last renegotiate phones, waste, or janitorial services?
• Are we maximizing productive time—or paying for windshield time?
• Is overtime controlled, or culturally expected?
• Is A/R disciplined, or have we quietly become a bank?
• How many subscriptions are we paying for—and using?
Once opportunities are identified, focus on the biggest impact first. Set a clear goal. Assign a clear owner.
Cost management isn’t an exact science, which is why inertia creeps in. But a proactive, common-sense approach can unlock real profit—without impacting your business.
John Gross is an EOS Implementer who helps small and mid-size businesses stop fighting fires & start growing by helping them take control. You can contact John at John@ DrivingChangeInc.com or call 636.667.0579.