August 30, 2016

From Strategy to Execution – The 4 Key Strategies - Part 3 of 4


Reduce Business COST

The market is changing way too fast and it has made doing business more difficult and challenging. The economic uncertainty has also not helped with the continuous rising cost in almost everything especially doing business. The 6% GST has also not helped and it is expected to increase further by next year. So what do we do about it? How do we overcome such challenges? 

The good thing is that we have already been planning for this since 2015. We have streamlined our businesses to be more focused on its resources. We have sold & closed non-core and non-profitable businesses since 2015. Our focused is now solely on education. We have also streamlined on program & service offerings. We have also put in place processes to have better internal control systems to manage and control internal/external resources. Thanks to Carole. A growing organisation must have a solid foundation and internal control system. If you get questioned by Carole or you do not get things approved so easily, you do not blame her for making your work life difficult. It is purely MY INSTRUCTION and DECISION. If you do not like to a grow with us further, I wish you all the best as you take your own directions further. This is fine as people come, people go. Most importantly, come on a good note and leave on a good note. The business world is a very small world.

We have a clear direction and focus on where we want to be by 2020. A Public Listed Company. 2017 will be a very big year for us and you will all hear more on 4th December 2016 in our ATCEN Education Group Strategic Direction & Business Plan Meeting. Lock that date down as I will share with you what we will be doing in the next 4 years. As such, the remaining of 2016 is critical for us to put in place the right team and right system to grow & sustain our businesses to achieve our very own Vision 2020.  

For the team’s better understanding I have explained the cost reduction strategies below. 

a) The idea of doing more with less.

Whenever you decide to do something within the ATCEN Education Group, always ask if this is going to achieve more with less. More in terms of ROI, results, revenue & relationships. And Less in terms of expenses, resources, people & time. If you can just focus on whatI have just stated, you will be able to help the organisation to reduce more cost in doing business. Leverage on technology and we will be serving even more as we launch our new Learning Management System for PORTMAN College. Asia is waiting for us. 

b) Optimising on what we already have. 

Over the many years of doing business, I have personally experienced our team members taking it lightly and for granted that we will always have budget to buy/ purchase whatever we needed as we do spend lavishly on equipments and facilities. Due to the incompetency of some previous staff that did not care enough to handle our resources and equipments, and also did not return items to its respective place, things are always broken and lost. This has also caused a lot of unnecessary expenses. So before you think about asking the company to spend on anything, please ensure that you have checked carefully and asked enough question within the organisation to make sure that we have exhausted all resources before we purchase/ buy anything. 

33 comments:

Ivy Loh said...

Reduce is always needed in every company to sustain.

Farmy Yow said...

Cost reduction is the best way to not only sustain its business, but to also ensure the company's growth.

arison ho said...

Efficiency: getting the most output from the least amount of inputs. We must always strive to achieve higher level of efficiency in workplace. ---Arison Ho

Rose Malia said...

A pessimist sees the difficulty in every opportunity and an optimist sees the opportunity in every difficulty. It is worth fighting for it.

rose

Gracie said...

Cost is more important than quality, but quality is the best way to reduce cost. Hence, less is more.
-MAY-

Anonymous said...

i strongly agree. Cost reduction is very essential for every company, especially during the times where our country's economy is constantly changing.

-fadelah-

Kong said...

Less is more. I won't call myself a minimalist, but we have to admit that this is true especially in uncertain economic environment.

A lot of public listed companies have taken the step to streamline their businesses. When we focus on doing less and doing it well, we are less harried, but more present.

Peggie said...

Yes. Agree with Mr Ernie.
Always leverage on what we have.

Daniel Kou said...

Yes. We need to make full use of resources and cut cost in order to make company sustainable.

Nur Shairah Azhar said...

There are many things that we, as individual, can do to reduce business cost. Eg: Use recycle paper instead of fresh paper, share office equipment with colleagues (ex: staplers), switch off air-cond/lamp when no people around etc.

It's all come down whether we want to do it or not.

Noorfa said...

Obviously, the highest type of efficiency is that those who can utilize existing material to their best advantage.

Kenny said...

Do more with less.

Always check before purchase anything.

MY said...

Over the past few months I have been reading about LARGE org shutting down offices, branches and also cutting man power. I have also heard from reliable sources that the economic state of the country in 2017 and 2018 is going to be much WORSE! I am always game for cost cutting measures to take place and making the organization LEANer. It's either your on-board and or "sayonara"

Ng Nicole said...

We always stay focused and maximized the profit. Last but not least, we also need to take care and fully utilized on what we have.

luna yap said...

Less is more!
The best way to reduce cost is leverage the technology that we have now.

Anonymous said...

Agree with you boss. We always need to plan ahead!

**Jimi

Chan Kah Hoe said...

Yeap, definitely agree with you, Mr. Ernie.
Really excited to see ATCEN Education Group to be a listed company in year 2020! :D

Suria said...

Reduce cost by leveraging on each other & optimizing current resources to increase profitability..

Anonymous said...

Agree with boss. Reduce cost is best choice for all company
-firdaus-

Malini Krishnamoorthy said...

The ability to reduce cost is as important as the ability to increase profit.

Ensure that everyone is aware that reducing costs is a collective responsibility that is shared by everyone; not just management. ~~~Malini

Gym Jian Sheng said...

One step closer to our Vision 2020!

The team getting bigger and solid with the right guidance.
We have to buck up and collect more war scars by doing more.
Therefore, we will able to contribute more for the organization and we can achieve our Vision 2020 together.

Yes. We do need to make MORE Revenue & Sales, always remember the idea of Do MORE with LESS to achieve cost effective and reach the wider audiences.

The team is moving toward the direction with the "SHARK Leadership". Once the team grow bigger, everyone able to do more and Mr. Ernie & Ms. Carole can focus the BIG Picture and the team will able to fully support from the back and ACHIEVE THE VISION 2020 together!

Thank you Mr. Ernie for giving us the opportunity to be part in the team, develop us with sincerity and provides us the right direction!

Thank you Ms. Carole for putting everything in place and control the whole business system to make sure the business & team are solid.

Thank you and let's FIGHT together!

Hard work is appreciated, RESULT is the only one can pay the bills! - by Ernie Chen

Muhiddin kamarudin said...

Looking forward to hear the strategies that will make us listed on Bursa!

Totally agree on the points to reduce cost. Utilize the resources and leverage on what we have.

kay wong said...

Thank you for sharing the cost strategies, agree on it. Look around for existing resources before spending extra expenses.

Pang Kok Wing said...

I will always remember "Do MORE with LESS" strategy because it really apply in whatever we do, no matter in our personal life or an organization. I will always carry this in whatever I do and optimize on what I already have.

Thank you Mr Ernie.

-Chris-

Kelvin Thong Jian Hao said...

Yes Mr Ernie, thanks for sharing!
Do MORE with LESS! ;)

Anonymous said...

Understood about reducing cost and will work on optimising what we already have in achieving our company's goals and vision. - Jay

烤焦面包人 said...

strategy is very important in business ,less is more ,we always need leverage on what we have to create more result for business

Michelle Liew

WESLEY CTYY said...

Indeed, challenges always come to people who really work on something. To grow & sustain on any businesses we need the right team, right place and right system.
only with 3R results, revenue & relationships that can achieve the Vision 2020.

mohd razif mohd yusof said...

I agree, We should optimize what we already have even a small thing can make a difference. - Razif-

Guna Sathasivam said...

Totally agree with strategy (b). We should leverage and optimize with what we have,not only to cut cost but to value it and use it wisely for our works.

Foong Jun Jie J.J said...

I agree that we have to take care all the equipment and we must checked carefully before we think about asking the company to purchase anything.

Louis Mok said...

Cost reduction is necessary for every company especially the uncertainty of economic now. We must always leverage on the facilities or equipments we have before we request for more.

-Louis Mok-

Jassce Wong said...

I agree that,Cost reduce is important for every company.