Believe it or not it is possible to cut budgets without upsetting your entire organization. Unfortunately, budget cuts are part of business - especially in the economic times we have been experiencing lately. 

What is the first thing you think of when someone says budget cut? Lay-offs, wage cuts, reduction in benefits? Doesn’t have to be.

David Mammano of Next Step Magazine explains how he cut his budget without his employees trying to overthrow the throne. Next Step employs an open book management philosophy so all employees know every item in the budget - or at least have access to the information. What Mammano decided to do first was to engage his employees. By getting them involved they were part of the decision and would be able to make suggestions that David may not have thought of. 

The ideas varied greatly, some proposed waiting to purchase new computers while others suggested asking for volunteers to bake birthday cakes instead of purchasing them. These might seem like small potatoes but in the grand scheme of things they have been estimated to save the company nearly $50,000 per year. 

I’ve always been told you get more bees with honey than you do vinegar. Rather than rule with an iron fist and cut costs wherever you can, involve your people, get their suggestions. Granted you won’t be able to follow through with all suggestions but there might be a few good ones that might contribute to the bottom line.