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i was dealing with an organization that had a new ceo and the ceo came in talking about cost reduction now there are two ways to make a dollar of net income reduce costs by a dollar increase revenue by a dollar so this ceo uh came with all these cost reduction packages and i said you have no vision reducing cost is not sustainable now i've had people come to me and say well we've reduced these costs because times are tough and these are inefficiencies in the organization i said well when was it in vogue to absorb inefficiencies i don't care how high the stock price is how profitable is it when was it involved to erode shareholder value and absorb the buffer of inefficiencies if these things were inefficient they should have been dealt with even when the organization was doing well so for me what's more important is increasing net income by increasing revenue by a dollar not by decreasing cost because decreasing cost is not visionary decreasing cost over the long run is not sustainable it becomes self-cannibalistic where the organization starts to feed upon itself now if you're reducing cost to increase net income that's something that should be done through the good times and the bad times but when a ceo focuses on reducing cost and not on increasing revenue i say that ceo does not have a vision when i've hired people and and they want to increase net income by having you know layoffs i could hire an intern to do that now we're talking about hr as a as a cost center but it's much more sustainable visionary to produce that dollar of net income by increasing revenue so i was speaking to someone that's involved in in real estate and he came to the conclusion that he started to invest in more expensive real estate property even though it put a squeeze on his cash flow because he came to the correct conclusion that the more expensive the real estate and the more he has to charge for rent the higher quality of people is he renting to and they tend to make better tenants so i feel that when you focus on revenue growth instead of cost reduction that's what's sustainable because russell you're going to get to the point where you can't reduce costs even more so it's definitely revenue as far as reducing cost you never want bloatedness that's something that should not be dealt with just because times are tough