Eric Schmidt, CEO of Google recently commented, ‘No company is recession proof, Google is feeling the impact’. Even though Google are still reporting an increase on last year’s revenues, their revenue model is changing as advertisers continue to spend less and fewer internet users ‘click through’.
When industry leading, global organisations issue PR to this effect, the enormity of the current economic crisis is compounded. Management boards across the globe are taking stringent steps to ensure that their organisation can ride the economic storm and emerge intact when calmer conditions return.
In my job, I encounter organisations from across all market sectors and one factor is fairly constant. If investment is to continue into projects that will deliver additional revenue, costs elsewhere in the business must be analysed for potential savings. Few companies are receiving injections of cash at this time and ensuring that bills, for any area of business spend, are accurate could enable your organisation to identify potential spend from within your existing budget.
You can guarantee that those companies overseeing their capital and operating expenditure with close scrutiny will be better prepared for the continuing financial struggle.
We do it everyday for our clients and we are showing them the benefits cost management can bring. I’m sure companies like Google are doing the same.
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