18. Challenges facing entrepreneurs:
• High losses, Inefficiencies and little knowledge of
actual figures!-where it is going wrong?
• Major decisions demand quality preparation and
evaluation in necessary detail, be compared by
consequences, optimized and monitored in
implementation
• The potential is underutilized, developments are
risky, results may be unpredictable and unexpected!
19. The price of ignoranceThe price of ignorance
(UK case studies):
Estimations of lost gross profit (GP) due to
various inefficiencies, per annum
Enterprise Group 1 (GP £ 400,000): 54,900
Enterprise Group 2 (GP £3,000,000): 215,500
20. Average enterprise improvement results
benchmarked after the Programme
implementations
• Overall Productivity Increase (or value
Added/person) + 9%
• Improved Efficiency + 18%
• Improved Gross Profit + 25%
• Reduction in Labour cost - 15%
• Overall Effective Efficiency increase + 5%
• Acceleration of business development - 6 years
Challenges they have:
Performance management is missing: most cases there is no budget, systematic control of expenditures in key categories (i,e. material costs), quality, productivity, added value per person, product, overall,
Important decisions are not prepared based on simulation of consequences (i.e., it is experiment on themselves and challenge for their business sustainability “to be or not to be”), there are mostly no optional solution and comparisons of outcomes,
It becomes more and more dangerous to run businesses this way in our more globalised, competitive and complex world.
Let’s take another country which is well developed
No one tell the truth ! There are calculated estimations based on basic data obtained in interviews!
Business benchmarking graphs allow seeing trends and note changes quickly.