Value Thinking in Lean Times: Put the Hatchet Away

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Value Thinking in Lean Times: Put the Hatchet Away

Ryan Shriver, Managing Consultant, Dominion Digital

March 23, 2009





The current global economic downturn is significantly impacting organizations and their IT departments. Companies are increasingly focused on survival as budgets are cut or frozen and sales forecasts look flat. Employees are wondering if their job will be there tomorrow and IT leaders are challenged to do more with less. Everyone must justify their plans for limited resources and hunker down to survive the choppy economic waters ahead.
 
The typical response is for IT leaders to use a hatchet approach to make across-the-board cuts to services and people. While the cost savings are immediate, they are one-time fixes that essentially keep IT running with fewer people and services. This type of drastic cost cutting introduces risk and does not position the organization for future survival. While a hatchet approach may be required in the direst of situations, organizations implementing across-the-board cuts are squandering opportunities to deliver increased value while simultaneously reducing costs.
 
Progressive IT leaders are responding with a scalpel approach, seeking precision opportunities to do more with less.



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