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Creativity Challenge in Cost Reduction
In every organization, reducing the overall cost of operation or slight growth in
revenue margin is integral for the profitability of the venture. Reducing costs in an
organization is a rigid task that involves forsaking some elements while upgrading others.
Regardless of the financial benefits involved in cutting costs, this process is problematic in
the workplace. While working in the finance department, I was selected in a special task
force involving the human resource manager, a representative from logistics, and operation
department. The team had a mandate of finding creative alternatives that would reduce the
costs at every level of the organization. The organization has had a series of cost reduction
eliminating any form of money wastage at the administrative level. The task at hand would
prove challenging as we had to identify possible strategies that would increase efficiency
while cutting operational costs.
The team encountered numerous challenges while creating a concise cost reduction
strategy. The process of cutting down operational cost at an organization find resistance at the
workplace and may result in more problems. The major obstacle preventing the team from
realizing the objective was employee resistance while a group of debarment heads was not on
board with the cost reduction strategy. These groups were aware that some changes would
slice some remuneration and allowance on redundant activities. The second challenge was to
collect data from all levels of operations to have a complete overview of the expenditure and
possible wastages. The data must align with that provided in the books of accounts to
guarantee the effectiveness of the cost reduction strategy. Thirdly, the team encountered the
