Event Details
Cutting Costs with a Scalpel, Not a Chainsaw: Maintaining Profitability in a Recession
2:30 PM, InnoTech Theater, Inside Ballroom D
Tracks: Developers, Software, Open to All Registrants
- Curt Finch, CEO, Journyx
In a recession, management often makes unwise decisions out of panic. They might cut employees or reduce spending on various programs that are good for the company. Consequently, many companies that slash costs in response to an economic recession find themselves unable to achieve top-line growth when the recession ends.
Overzealous cutting of people and projects can be avoided, or at the very least, can be performed with more intelligent precision. All that are required to handle such problems the right way are per-customer per-project profitability metrics.
Understanding project costs is the first step towards understanding profitability. Most managers know how profitable the company is in general, but few of them know how profitable it is on a per-project or per-customer basis. Yet this level of understanding is necessary in order to develop and implement the right growth strategy. Think of it as the difference between performing surgery with a scalpel and performing it with a chainsaw.
