How to Make Up Your Corporate Mind

Cut Costs the Right Way: Change the Work, Not Just the Headcount

Most cost‑cutting programs announce big numbers and then fail to move margins. In this episode of The Elephant in the Boardroom, Terri Long and Jeremy Eden explain why slash‑and‑burn tactics (blanket layoffs, benchmarking theater, reflexive vendor cuts) backfire—and how to engineer savings that last by changing the work with the people who do it and holding everyone accountable with facts.

Key Takeaways

• Don’t cut without changing the work. Layoffs with the same workload create chaos, worse CX, higher risk, and future churn.

• Involve the people closest to the work. They know the frictions to remove and how to improve without hurting customers.

• Decide with facts, not opinions. Ask “How do we know that’s true?” and collect the least facts needed to decide.

• Use strict criteria for ideas. Earnings‑positive, customer‑neutral/positive, risk‑neutral/lower, fast payback, co‑signed by all affected functions.

• Track actions monthly. Owners, dates, and verified impact keep savings from slipping away.

What Fails (and Why)

• Blanket layoffs or LIFO cuts: Talent pipeline damage and no workload redesign.

• “Bring in the experts” without buy‑in: Decks get ignored or resisted by the people who must execute.

• Benchmarking theater: “Cleanest shirt in the laundry” doesn’t equal the best solution for your work.

• Vendor squeeze by default: Better to co‑design cost and service changes; sometimes consolidating or expanding scope saves more.

The No‑Regrets Savings Criteria

For each idea, require:

• Earnings‑positive and budgetable down to cost center or P&L line

• Customer impact neutral or positive

• Risk neutral or lower (endorse with risk/audit when relevant)

• Fast payback if any investment is needed (months, not years)

• Facts from everyone involved, not just opinions

These criteria make approvals obvious and execution smoother.

Facts Over Opinions: How to Decide

• Use the least analysis necessary to be confident

• Capture specific proofs and known risks

• If someone objects, require the fact behind the objection and resolve it in the room

Track So Results Stick

• Monthly action reviews: Did the action happen? Did it deliver?

• Replace reds quickly with new actions so the plan stays whole

• Visibility creates accountability and reduces gaming

Real‑World Signals From the Episode

• Layoffs without redesign cause CX failures and attrition—savings evaporate

• Vendors can be partners: format or scope changes reduce cost and improve experience

• Tech isn’t the first lever: simple process fixes often remove 80% of the waste faster and cheaper

Practical Steps You Can Implement This Quarter

• Launch a 6–8 week idea sprint with the people closest to the work

• Publish the no‑regrets criteria and a one‑page idea template

• Co‑sign numbers with finance before executive review

• Stand up monthly tracking with owners, values, milestones, and RAG status

• Set a de minimis payback rule for any investment (months, not years)

FAQs

• Can layoffs ever be part of the answer?

Sometimes—but only with workload redesign so remaining teams can succeed and customers aren’t harmed.

• How much analysis is enough?

The least needed to decide confidently. Focus on material assumptions both business and finance accept.

• What about technology investments?

Use tech when it has a fast, provable payback. Start with process fixes the frontline will adopt immediately.