Chapter 5

Is cutting every department equally really fair?

Cắt đều mỗi phòng có thật là công bằng?

The chapter's question

If I had to cut spending by twenty percent, where would I cut?

Big idea

Cutting every department by ten percent is the fairest approach and also the most destructive.

In this chapter

  1. Part 5.1

    Across the Board or Selective

    Why is an across-the-board cut usually wrong?

  2. Part 5.2

    Costs That Create Revenue

    Which cut today costs revenue next quarter?

  3. Part 5.3

    What Can Stop Immediately

    Which costs can be reduced within thirty days?

  4. Part 5.4

    Telling the Team

    How do I explain the decision to cut?

The reading for this chapter is inside Conan School

This chapter has 4 readings, with case stories and exercises. Chapter 1 of Budgets and Who Owns Them is free to read right here.

Read in Conan School

Chapters of Budgets and Who Owns Them

  1. 1.Is a budget a forecast, or a promise?
  2. 2.Should budgets come from the top or the bottom?
  3. 3.Who guards a budget line with no owner?
  4. 4.Is revising the budget mid-year flexibility or defeat?
  5. 5.Is cutting every department equally really fair?