http://imageshack.us/photo/my-images/804/pingy.jpg/No wonder I suck xD
(and thats a good ping for me

)
Btw there is a slight error in your description

You have ping listed as time taken to reach server when in actual fact it is round trip time; That is time taken to reach destination and then back again to your computer.
As for decreasing latency, there isn't much you can do to drastically change it, besides moving closer to server. But here are some tips;
You can remove the amount of nodes (routers,modems etc) that your own network goes through. ie simplify your network.
Reducing length of the networking cables (if you are on wireless; plugging via ethernet cable). Getting high quality cables helps as well.
Stopping all unnecessary downloads, and anything else using up your bandwidth. Could be multiple computers running off same connection.
Going with a good ISP can reduce latency.
A more sophisticated way of reducing lag is to use VPN to reroute your traffic to the server. "Smart" monitoring VPN software can monitor your connection and watch for latency and lag, then searches for more efficient routes.
Be aware that VPN can also do more harm than good. It is affectively adding another node to your systemBasically all you are trying to do is reduce the number of steps it takes from the input to the destination.