Let’s say a person just became the CEO of the company. This employee just took over from someone who has been in the position for a number of years but is no longer productive. The sales growth is down and bottom line is, the firm is unable to make money.

The board members feel there is room for improvement. The stockholders want results. What should the person do? Some people think a major revamp is in order but this will take time and that is something no one can afford.

A long-term plan is in order. Instead of spending, the company must learn to save on certain things so that additional resources aren’t needed to fund the further projects.

Many firms believe the only way to save money will be to cut costs. This is the reason that companies such as General Motors or Daimler Chrysler have decided to cut more than 5,000 people from the workforce.

The CEO can do this by letting each department submit a report of accomplishments, pending assignments and the budget. If some of the work being done is redundant, this should be stopped immediately and used somewhere else.

The person in charge may also decide to outsource the workforce in another country where the cost of labor is cheaper. There are many firms in the United States that have done this in places such as China which is seen to be a long term strategic partner in the foreseeable future.

Idle assets that can’t be turned into anything productive should be sold. This can be done through an auction or by posting an ad in the paper. The buyer who gives the best price can have it and that matter is finished.

Every firm needs raw materials and other supplies from someone else. If the cost of these goods is quite expensive, perhaps it is time to look for other suppliers. The person should make sure this new partner can give the same quality as the previous one since this could affect the company’s brand image in the market.

It takes more than one person to turn things around. The CEO must make certain changes and get the support of everyone on board to make things happen. By cutting costs, selling off unproductive ones and doing some outsourcing, everyone will be happy to see changes that may happen in the next few months or years to come.