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Corporate cost cutting strategies - Phil's Rambling Rants — LiveJournal
September 8th, 2010
01:34 pm


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Corporate cost cutting strategies

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[User Picture]
Date:September 9th, 2010 03:12 am (UTC)
My father worked as a compliance officer for Peabody Coal way back when. His job was to get a mine into compliance with the safety regs. He could do it.

The problem was that when he left the mine to go to the next mine, people would slide back into the same old sloppy habits, because it was "easier" and the safety stuff wasn't really needed.

Until something went really wrong.

Trust me, a lot of these things are easily identified as stupid. :)
[User Picture]
Date:September 9th, 2010 04:20 am (UTC)
The people actually working on the job will be just as faithful to their safety procedures than their bosses expect of them. The bosses' bosses, somewhere in an office, make decisions about how hard to push for the budget for safety equipment and paying for fully trained people, and they're answering to bosses who are ultimately looking at the bottom line. It comes down to whether they're looking at the bottom line in the long term, or (usually these days) just desperately trying to make this quarter look more profitable than the last one and not really worrying about what, by the odds, won't come along for several years.

It'll look stupid to the reporters and the accident investigators, but it probably didn't feel stupid to the people who physically handled the tools and equipment. What's missing is the bosses' bosses' bosses, making the policy decisions, facing any personal responsibility when their policies cause damage. The high level decision makers aren't stupid. They're very clever. They just don't have the right incentives.
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