One dimension of cost-cutting is often disregarded—the
critical need to ensure cost cuts occur in ways that
obtain positive emotional commitment within the context
of the culture. Employees need to somehow feel
positively motivated to support decisions and to commit
to behavioral change that reduces costs. The first step
is for executives to take on the responsibility of
ensuring that front-line leaders’ actions appeal to
employees’ hearts and minds. Positive motivation cannot
be delegated or mandated. In this commentary piece we
explore how effective cost reduction capitalizes on and
reinforces company culture—and integrates emotional
commitment of the workforce with the strategic
imperatives for the business. While easily said, some
companies have done this. pdf