Protect Capability While Cutting Cost
Evaluate a cost action by both savings and capability impact so cuts do not create larger downstream costs.
Savings should lower economic cost, not just visible spend. The hidden failure mode A line item can go down while total business cost goes up. Teams see this when they cut service capacity and then pay in churn, or cut quality checks and then pay in defects and rework. The budget improved. The system got worse. A useful separation Ask whether the spend is waste, optionality, or core capability. Waste should be attacked. Optionality should be priced deliberately. Core capability should be redesigned carefully, not stripped casually. That framing creates better tradeoff conversations than simple good-cost versus bad-cost labels. How…
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