Expenses need to be cut, but not in my department
Use your strategic filters to guide the way as you continue to build a team that sees the big picture.
We’re all aware that 2021 could be a lean year for earnings, given that loan losses are expected to increase, the low rate environment is expected to continue, and the unknowns seem to outnumber the knowns for the pandemic and the economy.
Many organizations are in expense control or cost-cutting mode. One of the challenges, beyond the obvious, is how to get your team on board with the decisions that are being made. Making equal cuts across departments might seem like the best way to avoid “being unfair,” but it’s rarely the best path for the organization as a whole.
Strategy and reality are the filters. When making tough decisions, your strategy must be paramount. Think long and hard about any cuts that could chip away at your business model, the ability to generate income, acquire members, cross-sell or the member experience. As you consider, ask how long these decisions will have an impact, and what they might do to your competitive position in the future.
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