Rational expense reduction: Lean budgeting at Irving Oil

Authors


Abstract

The downturn in the global economy has made companies across all industries cut expenses to meet investor expectations. But if these cuts aren't done in a rational manner, they can lead to dysfunctional behavior that can just intensify the economic pressures worse. This article describes an action-based development program jointly designed by Irving Oil, a Canadian regional energy processing company, and Babson College, a leading provider of executive education. The focus of the program was to meet top management goals for expense reduction, while, in the longer run, building a culture of lean management. © 2012 Wiley Periodicals, Inc.

Ancillary