Bottom Line Evils


I am sick of hearing about the disasters and impacts caused by Bottom Line Cost Cutting Thinking. I am going to start this page to let people know about what happens when you irrationally cut costs to increase profits. When will Industry and Government learn that cutting corners usually results in higher costs, lost customers and disasters. Is the almighty dollar more important than life and safety? This is not condemning improving efficiency - when it is done with a THOROUGH ANALYSIS of the impact - upstream and downstream - and without the interference of MBA's and financial people. Sometimes increasing efficiencies has hidden cost increases or has associated costs to achieve the efficiency. You get what you pay for. If it will cost to implement the efficiency and it has a return ... why not do it? So what if it takes a few years to achieve. Rewards come to those who 'Do Something.' I think that part of every MBA/Finance program should have a class on thorough analysis, creative thinking and impact of reducing the bottom line.



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