Trimming The Fat Off Your Business
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Trimming the Fat: Restructuring for Healthier Business

Restructuring your business is not just about cutting costs or laying off employees to save their salaries; Trimming the fat basically means optimizing your company from top to bottom.

There is a common misconception about this term standing just for reducing company’s expenses while in reality it is much bigger than just that.

It is exactly like organizing your closet… you may discover that you have to get rid of unwanted items or you may find valuable things that were forgotten.

It is also like your body… you can work to make it healthier and be physically fit. Similarly, if you are operating a flabby, bloated business and weren’t able to cope with current pandemic, and you’re only seeing the negative impacts business performance and unhealthy KPIs… then please reconsider “Trimming the FAT”.

Basically, ‘trimming’ your business’s ‘fat’ allows you to achieve higher performance rates and smooth the whole operational process down.

Trimming The Fat Off Your Business

Focus on the Core Brands

You need to ask yourself do you really have the right price? is it better than that of the competitors’?

Does your brand generate a reasonable contribution margin? How about re-visiting your direct costs? Re-negotiating the price with your suppliers or even the payment terms.

Outsource supporting functions

tend to over-dress intending to impress the employer by the price of clothes, brands, but it could back-fire and they get rejected as this may exceed the specified wages or it may distract the listener away from their experiences, or it may even give the false impression of mistrust.

Do you really need a full-time marketeer who will work only on the event of launching new products or services? Do you need a full-time compensation and benefits expert who will generate the monthly salary or annual promotions?

In order to justify it, you’ve got to look at the skills around you; do you have workers that can complete everything in-house? You really may need to have some time to answer the above questions… And if we are unable to keep a member of staff on board, like a Head of Marketing or even a Chief Information Officer, then outsourcing is the most obvious and beneficial solution.

Fix Your Business Cycle / Internal Communications

Clear the road for your growth. The Management has to understand the reason behind stagnant phases… check what is delaying the process that you are wasting lengthy and unnecessary time and money on, maybe you just need to reduce the manual input and automate the process or at least part of it.

Save some of the Rent cost and Take it “Home-based”

Covid-19 has taught us all a lifetime of lessons, one of them is Remote working, which is a perfect way to trim some fats, this will require some cultural change, such as switching from job description concept, working hours and attendance to “managing by objective” i.e., Balanced Scorecard, task forces, SMART objectives…etc.

Nevertheless, some of your employees will not like the idea of working from home, others may abuse it, however, going from a physical location to remote working is achievable, but it is not without its difficulties.

Restructuring any business is painful anyway but it is extremely worth it if you are planning for long term growth.


Of course, after this COVID-19 pandemic and the slowdown in economy in nearly every market, you have the right to look at your cost and try to cut it, just think of how to restructure what you do, and do it better, make sure you bring new thoughts and practices to your business to face the challenging and changing dynamics of the business.

Pinnacle has been supporting companies like yours in business modeling, asking the right questions and challenge the way it has been done to create better business plans, our Business Strategy Services are set to help you plan for the next operating year, then transfer this into solid Balance Score Cards and follow up on the achievements and the dynamics of the deployment. We help you plan and execute your plans effectively.    

Pinnacle® is a multi-country consultancy firm. Our consultants are spread around the world; with 70% of our consultants are women. We have built our organization on modern business model with agility, diversity, and resilience to the business dynamics. We have chosen our technology platform to support our modern mindset thus we work from anywhere …. As work is not a place anymore. We implement Lean Six Sigma in everything we do whether internally or externally at our client sites. 

This article is written by:
Inas Moniem
Inas Moneim
Pinnacle, Business Strategy Consultant
Pinnacle Ltd.

Pinnacle Ltd. is a multi-countries modern consultancy firm, with offices around 11 countries in 4 continents, and 28 consultants working remotely and virtually managed.

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