PROJECT TIPS FOR DEALING WITH RECESSION

1. CUT COSTS, BUT THINK FIRST

During hard times it may be tempting in the first instance to want to cut costs immediately and lower prices in response to squeezed margins. But wait, that may not be the best approach. What should be considered is what affect this will have on the business long term, as cutting staff numbers and prices now could make it more difficult to recruit the staff you need and raise prices later when trading conditions improve.

The emphasis should be to cut internal costs immediately by reviewing all business projects where savings CAN ALWAYS be made. In this instance the business can still achieve delivery of core business strategies thereby safeguarding future prosperity whilst also saving vital costs protecting the bottom line.

2. DO NOT FORGET TECHNOLOGY AND AUTOMATE WHERE POSSIBLE

To work smarter there may be many manual business processes that could benefit from being automated using the latest technology. In the longer term this will make the process cheaper as an operating cost over the use of human resources to do the same task. Business Process Reengineering is a continuing mindset of managers in forward thinking companies and is a strategy that builds business competency and worker efficiency for the future. This does not necessarily mean the purchase of expensive technology as this may already exist but it may simply be putting it to better use.

4. REMAIN BOLD IN BUSINESS THINKING

Now is not the time to develop a trench mentality for your business. No matter what the commercial or economic circumstances are the difference between you and your competitors is what you do. Maintaining a holding position is not an option. Those companies that drive harder for success in uncertain times will forge ahead more than those that want to weather their difficulties out. �It is better to ride the waves of change then to tread water waiting for the wave to wash over you�.

3. PARTNERSHIP WITH EXTERNAL SPECIALIST COMPANIES

Overall working in collaboration with external companies experienced in managing and implementing technical and business projects is relatively cheaper than tying up internal and full time personnel. This is because of the relative high costs of recruiting permanent staff with associated recruitment, pension contribution, health care costs to undertake the same project work. However, this may not be the case for longer term projects but each must be judged on cost benefit analysis.

5. SPEND MORE TIME ON WHAT MATTERS

Follow the 80/20 rule. 80% of your business income is from 20% of your best customers so treat them exceptionally well. This also goes for projects. Do not waste time on projects that are failing to deliver your originally planned business case. Costs can always be saved by consistently reviewing business change projects to ensure that the business case still stands against the project cost estimates and objectives. Also incorporate internal business processes into the project management framework.

If you want to find out more from a company that specializes in project management which cuts the cost of delivery then go to www.mulhollandhobart.co.uk a company with a track record and wide experience delivering technical and business change projects and programmes successfully.

Mike Staves is author of this article on Project Management. Find more information about Business Change here.