Sunday, November 30, 2008

Some executives should not be speaking to the press

This was a little scary to read coming from the mouth of a high-ranking executive of a public company. Didn't anybody on the company's communications staff review what this man said to Fortune magazine?

In the December 8, 2008 issue, the publication has its regular "Three-Minute Manager" feature where they ask three top executives three questions on a big overall topic.

The subject this time: I need to cut costs dramatically. How can I find smart ways to do it?

Opening question: How do I identify where I'm spending too much?

James Dallas, SVP of quality and operations, Medtronic: "Bring in third-party groups that specialize in benchmarking. For example, we hire experts in areas like telecom to help."

Third question, one inch below the first one: What are some reductions companies often overlook?

Dallas: Hired consultants and contractors are big expenses that often get overlooked. While most companies pay very close attention to their internal headcount, they don't focus as much as they should on how much they are spending on these third-party resources."

Uh, Mr. Dallas, make up your mind -- do you hire "third-party" groups to "benchmark" for Medtronic or are they "big expenses?"

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