This economic climate provides the perfect opportunity to look at ways you can cut costs without sacrificing quality or personnel.

When times are good, it’s easy to slip into a comfortable status quo: Payroll and other costs drift upward, processes go unquestioned and there’s little incentive to innovate. All that should change when times get tough. Fresh thinking about cost savings and revenue growth can position your organization well for greater profitability in the future. This isn’t possible, however, without a corporate culture that embraces change and challenges “business as usual.” Ask yourself, your managers and everyone in your organization these questions:

Why do we do it that way? The business processes you developed in response to customer needs and market requirements may have been cost-effective when you put them in place, but are they still optimal today? Challenge managers to monitor performance and model alternatives to identify bottlenecks as well as opportunities for cost savings and other improvements.

How can we become more productive? Academic studies have consistently shown that productivity is closely aligned to job satisfaction, which in turn is influenced by qualities such as control over one’s work, feeling “in the loop,” strong leadership and opportunities for growth, all of which can be provided at little or no cost. If you are facing payroll concerns, consider voluntary programs such as flextime, job sharing and unpaid leave before layoffs. Do your employees feel that their opinions are sought and valued? Establishing ways to let good ideas bubble up from the people closest to the work can yield savings while building a sense of ownership and shared effort. In every case, communication is key to employee buy-in, no matter what changes you need to make.

What differentiates us from our competitors? Lean times are great times to get back to core values, particularly those that can help you carve out a specialized market niche. Focus on your most profitable businesses, learn what your best customers like—and dislike—and take a hard look at operations and customers that contribute little to the bottom line.

One last thought: Change—even for the better—is not always welcomed because it disrupts routines and upsets the settled order of things. But if a leader establishes a culture of change, where innovation is recognized and rewarded on an ongoing basis, then the organization will reap the benefits.

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