30. Short Pencil

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Successive waves of cost reduction begin to interfere with the organization’s ability to get work done.

Sure, cost containment is important, even essential. It’s vital that your organization has as little burden of overhead as those it competes with. Given all that, there is still something terribly wrong when you start to hear team members make comments like this:

“I hate working for a company that makes you turn in a short pencil before you can get a long one.”

The most dedicated cost-reduction advocate would probably admit that such programs can be carried too far. It’s perfectly obvious that too much cost reduction could make ...

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