When the economy is not doing well or when a company is not doing well, there is tremendous pressure to reduce costs.
The accountants are normally the worst persons to come up with suggestions to reduce costs. They will find simple, stupid costs and act like they have done something great. The normal suggestions are:
– travel by train, not air
– serve tea/ coffee only once in a day
– cut down/ reduce staff welfare
– switch off the a/c, fan, lights
etc. etc ….
Now all of these are good suggestions no doubt, but will it really matter in a huge organisation? No it will not. The accountant will make a big excel sheet presentation called ‘impact analysis’ and hours will be spent on analysing the impact.In one such meeting in a big company with multiple plants….as usual one of the accountants said ‘let us close plant A’ -this is a high cost plant….
The GM in charge of production said ‘Vow what a suggestion, let us close ALL the plants, all the costs will be saved’ – and there was laughter all around!
This post however is not about cost reduction it is about our regulators…
The regulator should do the following:
– dramatically improve penetration of the END product which he is regulating
– dramatically reduce costs while improving the service
I see only TRAI having done that. I keep wondering whether the other regulators believe that by reducing / ELIMINATING the industry they can eliminate the complaints?
‘shut down all plants to save all costs’ can also be translated to ‘close down all the players in the industry so that there are no complaints’???? just asking!!
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