Setting the course

 

When attempting to boost the bottom line there are two courses of action, reduce operating costs and generate additional revenue.

The first action that many organisations take is to reduce staffing numbers, seeing this as a quick fix. This has been the first action taken by the supermarkets and retail chains as they face competition from online suppliers.

 

It is a tool by which management perceive they can demonstrate that they are getting to grips with the problem.

 

However, there is a danger that in line with reduced personnel there is an accompanying decline in operating standards. In such circumstances customers often choose to vote with their feet.

For the sales director there is only one shot in his/her armoury namely increase sales. Sales targets can always be raised but a sense of commercial realism also needs to be applied.

If the company is marketing a totally unique product or service the task is easier but for the most part there are many organisations are offering a similar range of products in a broadly similar price range.

In many instances companies would be advised to make customer service their USP but this requires the commitment of a dedicated work force not one that is pre-occupied with the spectre of further redundancies.