Cost control is often misunderstood as a blunt exercise in reducing headcount and sacrificing quality. John Joseph Carpenter sees it differently. His track record, from guiding New Jersey’s largest credit union to steering his township to complete debt freedom, shows how aligning expenses with long-term goals ensures organizations can thrive in both prosperous and difficult times. “You don’t have to cut corners to control costs,” Carpenter says. “You have to make smarter choices that support your mission.”

Lessons From Governing With Discipline

During his tenure on the governing body of Bernards Township in New Jersey, where he served five terms and three as mayor, Carpenter led an effort to reverse the near-inevitable rise of property taxes. “When I came into office, we decided to lower the tax levy, not just keep the rate steady,” Carpenter says. “That levy is the cash that leaves people’s checking accounts, and that’s what really matters.” His team not only reduced taxes in three of his first four years but also managed to do so without diminishing essential services. Roads remained well maintained, the police force strong, and parks and health services fully supported.

 Later, he spearheaded a plan to pay off all municipal debt, making Bernards Township 100 percent debt-free by 2011. “The question was always: ten years from now, will people say we had foresight? That kind of thinking changes decision-making,” he says, proving that cost control is most effective when it focuses on empowering people. “The most intractable problems are solvable when you decide to solve them,” Carpenter adds.

Timing Is Everything

“So many leaders only look at costs when times get tough but by then, panic sets in and thoughtful decisions are much harder,” says Carpenter, who draws parallels to his government experience maintaining reserves. In municipal budgets, reserves act as working capital, allowing flexibility when revenue and expenses don’t align. Without them, borrowing becomes necessary and costs climb. The same logic applies to businesses: when downturns hit, reserves and disciplined cost management create choices, while unprepared organizations find themselves with none. Even during periods of high growth, cost control should be a priority. “When sales are booming, people think they don’t need to worry,” he says. “But the sun doesn’t always shine. It’s much easier to put a plan in place when things are going well because you have time to be strategic.”

The Two Best Times

Early cost discipline creates compounding benefits over time, while acting today prevents organizations from falling further behind. It is less about quick wins and more about building a sustainable culture of financial responsibility that leaders can hand down to the next generation. “The two best times to start saving money are 50 years ago and today, definitely not tomorrow,” says Carpenter, who offers three practical moves:

  • Tie cost savings directly to strategic goals. “Cutting without direction is like wandering in the dark,” he says.
  • Set specific, measurable targets. “Soft targets are no targets at all. What gets measured gets accomplished.”
  • Monitor progress consistently. Without tracking, he warns, cost control becomes a “mañana” task that never arrives.

Technology, Focus, and Value

Cost control done well can free up resources for growth while safeguarding quality and resilience. Looking ahead, Carpenter sees technology, in particular artificial intelligence, as a powerful tool in analyzing spending. “AI helps us categorize and assess expenses, but it lacks human judgment. You still need the human eye to validate and apply wisdom to the results,” he says, while also urging businesses to focus on core strengths while seeking outside expertise for other categories. To illustrate, Carpenter points to steel companies. “They know how to buy coal and iron ore. That’s their core. But they also spend heavily on things like benefits, insurance, chemicals, and uniforms, which aren’t their expertise. That’s where outside advisors can unlock value.” In his own consulting work, he operates on a contingency basis, where savings are shared. “If I find value, we both benefit. If I don’t, it costs you nothing. That’s literally found money.” The distinction, he emphasizes, is between price and value. “Value is quality, delivery speed, reliability. Focus only on price and you get in trouble. Focus on value and you build strength.”

Readers can connect with John Joseph Carpenter on LinkedIn.