Another part time CFO engagement is ending for me, which got me to thinking.
For companies looking to reduce costs in these difficult times, consider replacing full time positions with more experienced (and efficient) part time workers. Of course, you do not replace sales and product development people or the Controller, but the CFO, CIO, CTO, COO and senior marketing executive are all candidates to be downsized to part time. Target to spend 60 percent of the full time cost for the part time executive. An above average CEO is probably required to make this work and when in doubt do not do it.
Why would I be recommending such an aggressive strategy in tough times:
- Most executives are not nearly as efficient as they could be:
- Many senior executives could be eliminated if the CEO would do a better job of focusing the company only on what's important (sales, customers, cash flow and strategy)
- Laying off hourly employees is the easier less confrontational solution, but cost cutting should start at the top with senior executives taking pay cuts, being let go or being replaced with part time executives.
With the stock market in the dumpster I think a lot of retired executives will be coming out of retirement to make ends meet and a part-time executive position might be attractive to them.
Note: Anybody looking to downsize all of the senior executive positions in their company to a single executive (besides the CEO) or needing one of these executives part time, give me a call.(yes-once I even ran marketing.)
