Effective way to reduce cost

Its a rule of thumb which any leader and manager can be aware of, always consider all possibilities for cost cutting and improvement before going and asking for the suggestions to employees. Now a days "Boss is Always Right" may not hold true. Boss has to be very practical about the cost cutting approaches.

Leader has to be approachable and transparent to employees. Employees should feel that they are part of the team, organization. Each employee should be encouraged to ask questions, give suggestions.