Efficiency based company
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Efficiency based company

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Mostly steam venting only. Sadly no solution offered.

Mostly steam venting only. Sadly no solution offered.

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Efficiency based company Efficiency based company Presentation Transcript

  • Efficiency-Based Company
  • What is it
    Not “Innovation-based Company”?
    Innovation based company grows with power of innovating
    Product: innovative products and service, opening new opportunity, creating new strength
    Process: changing itself and evolve to be the frontmost
    So why not?
    Not-supportive environment
    Management that can’t move
    Stakeholders won’t take the cost for the change or it will shake the flow beyond tolerance
    The business itself doesn’t lend much room for innovation
    e.g.: labour-intense factories with single timeless product (such as cigars)
  • What is it (cont.)
    Efficiency-based company
    Is a company where it’s survival and growth depends mostly on efficiency to use resource and potentials it has more than any other means
    In rude way of speaking, company that grows by milking every last drip of sweat and blood from its labours
    Usually large company
    Firmly grounded massive structure and process that are difficult to modify radically without taking cost and victims in the process
    Has grown big that demand of growth more or less looks unrealistic compared to the market situation
  • Being efficient
    Keeping operational cost low rather than growth from income
    Ideally operation would grow as company grow
    Growth demanded has become too difficult to achieve
    E.g. 15% growth in multi-billion Dollars business in stalling market
    Using previously untapped potentials
    The “milking every last drip” attitude
    Raising stakes for individual targets
    Overtime become norm to reach target
    Ideally overtime is to achieve more than targetted
  • Cost cutting measures
    Slow growth of workforce number
    “use what we had in hand” attitude
    High but controlled use of “disposable” outsource employees
    Early retirement offers
    Slow vertical movements
    Slow promotion
    Reducing need of raise and benefits
    Cut of benefits
    Healthcare, family
    Restructurization
    Frequent changes to remove workforce in order to stay “lean and mean” in the market