Early-stage and small companies often approach the subject of costs much too simplistically. Costs are bad, they say, and we need to reduce them whenever possible. As companies grow, however, they need to develop a more sophisticated approach to thinking about costs. They should begin to evolve their thinking from focusing on cost control to focusing on cost optimization.
They need to focus constantly on optimizing their value-added costs while minimizing nonvalue-added costs wherever and whenever possible.
From The Breakthrough Company.