Articulating a Problem
This weeks problem for our team was figuring out a way in cutting down our expenses due to it being extremely high and our sales revenue not being able to account for how much we are spending on it.
Analysis of the Problem
Due to us having to make such drastic changes within our expenditure and having to cut down in various areas by significant amounts we were faced with the challenge of where to cut down and by how much. As you would expect managers of respective areas were hesitant in making changes within their areas especially when we expecting decreasing totals by such significant amounts. Therefore I delved further into our finances and with the help of Peter found suitable areas in which we could drastically cut down costs but however will somewhat affect the performance of that sector. When presenting to the team it was a hard thing to take in however we all realised we need to do whatever we can in order to succeed, especially in the current state in which we are in at the moment.
Solution of the problem
As finance manager I personally would be biased towards reducing costs as finances are my number one focus, however this would be the same for other areas who would be favoured to their own and would like to see their own do well. therefore convincing the respective members and the team as a whole decreasing by such a massive amount was a huge hurdle for me. Therefore by seeing help from Peter and presenting my own findings we were able to work as a team in making the changes in which we deemed to be appropriate for our business success. As long and hard of a process this was we did work it out as a team in decreasing our expenses by a significant amount, in which thankfully lead to better expenditure and a overall increase in SHV after weeks of shakiness.
Therefore from this week by seeing how difficult it is in coming up with such important decisions, for future reference I will now better prepare myself to have backing when I present ideas so that when I explain what areas need to be cut down on or other changes to be implemented i will be more suited to explain the reasoning behind it rather than having to have such a rough week in coming up with decisions based on what we feel rather than what is factually backed up. This will help reduce conflict when making such decisions as well improve the overall efficiency we work with due to decisions coming about a lot quicker due to this.
Daudelin, W. M. (1996). Learning from experience through reflection. Organizational Dynamics, 24(3)