Don’t lose sight of long-term organisational health. Before you cut heads, begin cutting overheads!
As 2024 draws near, fears further economic turndown still looms at many companies. The manufacturing sector continues to suffer from the dual impact of inflation and redundancies – the latter that could perhaps be mitigated (as we will come on to).
We all know about the significant challenges the global economy has been facing. Some companies are putting the brakes on capital investments in 2024, while others are cutting into areas in their business with little thought on long-term implications.
According to one study, only 43% of companies actually achieve the cost reductions they reach for in the first year, and only 11% can sustain the prudent behaviours into year three.
Although the ultimate failure we see often comes from taking their eyes off the future.
If you’re facing the need to tighten your belt, there are ways ERA can help. Download our insights today.
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"According to one study, only 43% of companies actually achieve the cost reductions they reach for in the first year, and only 11% can sustain the prudent behaviours into year three. The ultimate failure we see often comes from taking their eyes off the future. For example, only 9% of companies create enough capacity to take on growth and innovation to support their long-term aspirations."