Across the Board Cuts Seldom Work: Board cost reduction programmes, accompanied by sweeping goals such as ‘reduce cost by 20% are seldom successful. This is so because such a programmes generally followed by reduction, they fail to recognize in work force for cost reduction & difference in customer value & behavior. It may be that a small percentage of customers say 5 to 15 % account for majority of customer value or profitability for a company. But traditional cost management fail to recognize a company’s most valuable customers, moderate valuable customers & low valuable customer& therefore due to board cost reduction programmes, services towards all the customers affected in the same way. And resulted in decreases in profitability as those highly revealable customers leave the company for other suppliers those proved themselves more willing to cater to their specific need