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Cost and Margin

Five cost cuts that quietly cost more later

Cutting training, maintenance and senior hiring looks good on one quarter's P&L. We walk through five cuts we see reversed a year later, and what to trim instead.

HM

Helen Marsh

6 min read

Some cost cuts look great on one quarter’s P&L and expensive on the next four. We see the same five again and again.

1. Training

Cutting training saves money right away. The cost arrives later, as slower onboarding and more mistakes from people who were never shown the right way.

2. Preventive maintenance

Deferring maintenance is borrowing from your future at a high interest rate. Unplanned downtime almost always costs more than the service you skipped.

3. Senior hiring freezes

Freezing senior roles pushes judgement calls onto people who are not ready for them. Decisions get slower or worse, and often both.

4 and 5. Customer support and quality checks

Both are invisible when they work. Cut them and you will hear about it from your customers, usually in public.

What to cut instead

Start with spend nobody owns: duplicate tools, unused licences, and contracts that renew on autopilot. It is less dramatic, and it sticks.

Written by

HM

Helen Marsh

Senior Partner, Finance

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