Today, as the coronavirus rages on, it’s a must for any business that wants to outlive the pandemic to have in place cost-saving strategies. And this extends to project works of companies. Strategies for Executing Cost-Efficient Projects in the COVID-19 Era
There are several ways to achieve cost efficiency in projects. Simply slashing salaries is no longer a viable solution.
Disrupted supply chains, high revenue losses, knowledgeable clients, coupled with the age-old stiff competition, have more than doubled the competition of prices.
To succeed amidst this COVID-19 engineered chaos, you need to understand the present competitive forces at play in your industry. Reexamine your niche and stick with the area where you’re more than able to win.
Then the next step in your play-to-win agenda is to position your business to work with and not against the new competitive forces.
Here, I’ve detailed 4 no-fail cost-efficient strategies that would give your company a fighting chance to survive in this global pandemic year.
Go the Lean Route
Adopting Lean Principles can cut production costs; reduce inventories and manufacturing throughput times (time it takes to manufacture a product) in addition to decreasing errors and scraps by half.
So what is Lean? Without going into tons of technical jargon, I’ll say Lean is a simple but effective way a business can conduct its operations.
The Lean method groups all business processes into either value-added or non-value-added activities with the aim of wiping out non-value-added operations (wastes).
Bear in mind that waste in this scenario denotes all activities, that from the customer’s perspective, do not add value.
A study conducted by LERC (the Lean Enterprise Research Center) found that 60% of manufacturing operations are waste.
However, what’s good to know is that every company can eliminate these wastes using the appropriate lean strategy.
Rethink How You Allocate Cost in This COVID Era
The coronavirus turmoil blindsided many businesses all around the globe. But as the crisis begins to ease, business owners have to have learned about threats and find opportunities within the new normal.
Leaders have to accelerate support and training for remote workers. This way, not only are employees’ health protected, but more agile working principles that could save costs are forced to be adopted.
Plan for a Successful Management Change During Cost-Efficient Project
Every organization frequently experiences change.
Whether as a result of a reorganization, process updates, new technology implementations, customer service improvements, or compliance initiatives, change never stops, and it is necessary for profitability and growth.
When you develop a reliable management change process, any adverse impact the change might have on your staff or organization will be drastically minimized.
When planning for your management change process, consider what changes need to be done on crucial business aspects like infrastructure, software systems, and equipment.
Also, make provisions for tools needed for retraining, reeducation, and rethinking practices and priorities.
Keep the Communication Lines Clear and Open
It’s important you have an ongoing communication strategy for your project. This simply means have a plan detailing how you’ll communicate with your client and team; how often and also in what form.
For example, you could have a simple chart that shows there would be a weekly status call to Client A every Monday morning.
Irrespective of the details, one of the main goals of your regular contact should include describing any project plan with the client and team before it commences.
That way, if anyone feels that another approach would make a process much better, then that would be an opportunity to make such suggestions.
Strategies for Executing Cost-Efficient Projects in the COVID-19 Era