Reduce Cost or increase value?

By Shantanu Mohan

March 7, 2017

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Organizations that want to increase their metricsĀ either invest in:

Creating more value for their customers, or

Doing just enough to keep going, but for less effort and money.

During their first decade, the core group at Amazon regularly amazed customers by investing in work that created more value. When you do that, people talk, the word spreads, growth happens.

Inevitably, particularly for public companies, it becomes easier to focus on keeping what you’ve gotĀ going, but cheaper. You may have noticed, for example, that their once legendary customer service hardly seems the same, with 6 or 7 interactions required to get an accurate and useful response.

This happens to organizations regardless of size or stature. It’s a form of entropy. Unless you’re vigilant, the apparently easy path of cost reduction will distract you from the important work of value creation.

The key question to ask in the meeting is: Are we increasing value or lowering costs?

Race to the top or race to the bottom, it’s a choice.

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Cost reduce or value increase?
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The key question to ask in the meeting is: Are we increasing value or lowering cost.
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