Dog-Gone Good Way to Cut Costs!
In times when it’s vital to reduce expenses, former American Airlines president Robert Crandall offers a creative example of how to do so. While the details are situation-specific, the thinking process transfers to virtually any situation.
Crandall visited each AA location annually, and discovered that a low traffic Caribbean office employed an expensive night watchman. He suggested reducing the watchman to just three nights a week (the thieves wouldn’t know). A year later, with no theft, he suggested a further cost savings.
Crandall ordered a “vicious dog” sign be prominently placed, and found the meanest and scariest dog around. Months later, after no theft, he put the dog on part time duty.
During the next years’ budget review, in search of further cost reductions, Crandall instructed that the dog not be fed for a day to make him angry. He had the staff tape-record the dog barking, then play the tape recorder on a timer, so that potential thieves would be fooled into thinking a vicious guard dog was inside the facility.
And it worked!
How can you adapt this concept? The key is to analyze the central function of any system or process, then identify alternate ways to perform that function. In this case, the function was to deter potential robbers, and there were cheaper alternatives than a live guard. Rather than automatically accepting the traditional way of doing something, what better and cheaper ways can you uncover?
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