Many large corporations devote enormous resources, creativity and staff to top line policies for generating sales. When profits lag expectations, draconian expense cutting policies are often enacted, leaving a trail of great misery and little morale in its wake. But between these standard top and bottom line orientations there is an alternative: TIG Ventures.
Weve specialized in an unglamorous but critical part of making profits: expense reduction. The great enemy of Sales is Inertia. It is overcome by an assertive behavior that takes into account both the psychology and the culture of a company. The great enemy of Expense Reduction is laxity: the very human tendency to over-provide. When combined with the equally corporate tendency to think in departmental silos a gravitational effect on profits occurs.
TIG knows that expense controlling enjoys the status of bookkeeping in most major corporations. Given the impact of expense control on profitability we wonder why expenses are not accorded a cabinet-level position within most major organizations. The unspoken truth is that while everyone acknowledges the importance of reducing costs no one will acknowledge the cost-saver in the same manner they do the revenue-generator. Again and again, it is a human factor, not a financial one that governs our behavior.
Not only does this run counter to economic sense, it also overlooks an important element of human psychology: most people resist selling but enjoy buying. Thats why more people make purchases than cold call during their leisure time. This bias manifests itself in an oversupplying, overpaying and overlooking of expense controls. Later, during the reaction phase, a constricting overreaction takes place, resulting in customers being under-serviced, merchandise under-distributed and quality undermined. Were some of managements talent applied to comparing and negotiating the supply contracts early on, there might not be as strong a need to compensate for error currently.
TIG is the solution to the vicious cycles of feast or famine. We deliver immediate value and fast wins to corporations at many points along the value chain. Our years of experience are concentrated in four disciplines:
Extreme Value Negotiation
For reasons that are similar to the difficulty in being your own lawyer, doctor or broker, it is difficult for members of a corporation to objectively make optimal expense decisions.
Please contact us to learn more.