As a growing business, it is important to be on the constant lookout for ways to improve. As technology becomes more and more important in our businesses, ensure that you leverage it for more and more efficiency.
The NY Times is reporting Microsoft invested when most technology companies shed workers and projects during the industry slump, and as a result its expenses have increased faster than the company’s revenues over the last three years.
“This obviously is not a trend we can continue,” Mr. Ballmer wrote to Microsoft’s 57,000 full-time workers. “This year, we are targeting nearly $1 billion in efficiency improvement and cost reduction across the company, primarily by rethinking how we do things.”
Part of the rethinking has included Microsoft’s recently announced moves to reduce coverage for employees on branded prescription drugs and to reduce the discount that employees receive on purchases of Microsoft stock to 10 percent from 15 percent.
“Belt-tightening is what more mature companies do,” observed Michael Cusumano, a professor at the Sloan School of Management at Massachusetts Institute of Technology.