Chapter 7

Chairman Stewart Leads the Saturday Cost Reduction Meeting

I went to the Saturday meeting armed with the three approaches. The first, labeled Smart Cost Reduction Targets, listed Mac’s suggested actions across the department. The second, labeled Project Cuts—Death Spiral, eliminated the programs and their staff enumerated in Pete’s recommendations. The third, labeled, Winning the Cost War Approach, didn’t offer specific reductions but promised to attack cost across the board. My plan was to show the first two and play it by ear on the third. I was hoping that “smart targets” would be more appealing than “death spiral.” My guess was that we would end up with a compromise between the two approaches.

As things turned out, I didn’t even ...

Get Cents of Mission now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.