Managing a firm in a downturn means managing expense. But as firms tell ALB, that's not necessarily a bad thing
It is possible, we're told, to gauge the state of Australia's economy from the difficulty one encounters in securing a reservation at Melbourne's more salubrious restaurants. And, according to one partner in the know, the prognosis is not good. Whether justified or not, the perception is that times will become yet leaner. Fiscal responsibility has, therefore, become the order of the day.
Discretionary costs
The downturn provides an opportunity for firms to do the housekeeping they were too busy to do in boom times, said Holding Redlich managing partner Chris Lovell. "There are a lot of totally discretionary costs that we should have looked at before but we overlooked because everyone was too busy. Things like IT add-ons and tools which frankly I'm not sure people were using anyway. We have also postponed some IT upgrades and scaled back some marketing functions - we still have them, but not as many."
Lovell said that the firm has also made good savings by implementing proper inventory control over items such as stationery and food. "We're careful not to upset the culture of the firm," he said. "We certainly don't want to compromise the integrity and robustness of the business. But there were a lot of frills and fripperies for which there was no glaring demand."
Flexible overhead
Efficient and flexible use of resources, rather than cost control alone, is a key value at Corrs Chambers Westgarth. Corrs CEO John Denton described strong control of overheads as "a critical part of the firm's DNA" which applied regardless of the prevailing economic climate.
Corrs particularly places great store in the efficient use of its workforce without any geographical barriers. The firm has increased its investment in IT and business information systems this year, believing that the expense is outweighed by the improved integration and efficiency of its national offices.
The firm has no physical offices overseas, which means there are no fixed costs associated with maintaining premises. "It's a relationship-based approach rather than an [office-based] one," said Denton.
Go to page: 1 2 3