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Cutting Costs, Or Taking The Short View

By Art van Bodegraven | 10/06/2017 | 8:55 AM

Please enjoy the thoughts and musings of our friend, supporter, and long-time contributor Art van Bodegraven Jr., who passed away on June 18, 2017. Art was a prolific writer and had amassed a collection of unpublished blog posts he had planned to run well into the future. To honor his memory, we will continue to post these remaining blogs as he had intended. If you’ve been a fan of The Art of Art blog, check out our tribute.

 

OK, you can take the short view, focusing on tomorow.  Or, you can take the long view, thinking about tomorrow.

It's the difference between managing for today, cutting costs by any means necssary, or leading for tomorrow, investing for those visions that will make a competitive difference down the road.

Cutting costs for today, may satisfy shareholders, the CFO, and sme number of bosses, but is self-defeating in the long run.

Reducing labor and labor costs is a favorite target.  Searching for costs of all kinds can yield bonuses and promotions.

A crowd favorite is squeezing suppliers until they turn purple.

Another favorite, certainly with myopic managers, not so much with the workforce, is outsourcing.

But, focus on costs misses the point, when real leaders concentrate on investment, developing people, and taking on initiatives with long-term payoffs.

Your choice - go for the home run, or settle for singles.  Homers turn singles into RBI, make stars, and fill the seats.

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About Art van Bodegraven

Art van Bodegraven

Art van Bodegraven (1939 - 2017) was Managing Principal of the van Bodegraven Associates consultancy and Founding Principal of Discovery Executive Services, which develops and delivers supply chain educational programs. He was formerly Chair of the Supply Chain Group AG, Partner at The Progress Group LLC, Development Executive at CSCMP, Practice Leader with S4 Consulting, and a Managing Director in Coopers & Lybrand's consulting practice. Concentrating in supply chain management and logistics for over 20 years in his 50+ year business career, he has led ground-breaking strategic, operational, and educational projects for leading US and global clients. Art was principal co-author of DC Velocity's Basic Training monthly column for a decade, and was the principal co-author, with Ken Ackerman, of Fundamentals of Supply Chain Management, the definitive primer in the field. His popular blog, The Art of Art, has been a staple of DC Velocity's web site since its inception.



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