Discussion

By Former Employee on Apr 13, 2008

As a former employee, this does not surprise me. RSG likes to focus on new and creative ways to drive revenue, but does not have any effective cost control metrics or processes in place. Each department worked within its own silo and would gladly pass the buck on operating losses onto the another department's budget, which would greatly impact the bottom line of the entire company.

I had done a rudimentary back of the envelope cost analysis on a new product that one of our larger customers wanted us to produce and determined that the fixed and variable costs associated with the production of each piece was more than the price the client was willing to pay for it. When reviewing this with my manager, I was told that we usually didn't do that sort of analysis for each product and were just looking to drive revenue.

I also had to laugh when I had heard that a highly regarded Director was offered another job, the top brass said they wanted to retain her but not if it would cost six figures. We are talking about Metro NYC and a person with 10 plus years experience. It was clear to me at that point that the leadership at RSG did not understand what it took to compete and the concept of Return on Investment was lost on them.