Friday’s “Brexit” vote sent shockwaves around the globe as markets reflected a drop in confidence surrounding the unprecedented political and economic move. Decisions like this can have massive implications overnight. As such, leaders must look ahead amidst uncertainty to continue to evaluate priorities and make calculated financial decisions that can offer long-term stability.
Though much remains in flux from a macro perspective, there are a number of operational costs companies can scale back on to make smart business decisions that will affect the bottom line now without sacrificing quality. The following tips can help increase efficiency and drive productivity while saving costs:
Save energy. Do you know where your energy costs come from? More often than not, companies don’t have a strong sense of their energy usage. This leads to significant excess: according to the US Department of Energy, 30 cents of every dollar spent on energy use in commercial buildings on average is wasted. An energy audit – mandated in the UK for companies of a certain size, but left optional in the US – is a great place to start, making your company more energy efficient while saving money.
Get more digital. Reduced capital expenditures has been the primary driver behind cloud migration for some time. This benefit, however, only scratches the surface of what companies stand to gain by investing more in the cloud. As your business grows, the cloud has the ability to help systems scale and supports integrations with important SaaS providers like Zendesk and Salesforce. Not convinced? Finance departments are getting more involved in IT purchase decisions, with 29 percent buying cloud services directly. More oversight of technology investments will ensure you’re capturing all of the cost savings and being most strategic for future infrastructure investments, a reality CFOs will need to be prepared to own.
Travel less, connect more. To run a global business, companies are incentivized to make the most of travel. How? Start by creating an official travel policy emphasizing advance planning and using a booking agency for effective cost management. Although workers are more geographically dispersed than ever, companies can be smarter about travel expenses by considering where it makes the most sense to cut back. Fortunately, video technology and smart communications tools can help close distances without dipping into pricey travel funds. The more regularly these incorporate into the office routine, the more connected workers will feel. This can mean personal savings for employees, as well. Remote work options can eliminate wasted time, energy, and money when teams can check in and get things done commute-free.
In the end, it takes a (global) village to make business run well today. Keeping unnecessary costs in check can help you focus on better investments. What’s more, connecting stakeholders with cost-effective solutions helps you accomplish more with less. Taking advantage of cost-saving alternatives to business-as-usual today can yield recurring returns many times over give in the future.
For more tips on how CFOs can cut costs in 2016 and beyond, check out our latest whitepaper, 5 Ways CFOs can Save Costs in 2016. Download your copy today.