This document discusses efficiency-based companies. It defines these companies as ones where survival and growth depend on efficiently using existing resources rather than innovation. They are typically large, established companies with massive structures that are difficult to change radically without costs. Growth demands become unrealistic compared to stalling markets. As a result, efficiency-based companies focus on keeping costs low through measures like cost cutting, slow workforce growth, benefits reductions, and restructuring to remove parts of the workforce. Their goal is to "milk every last drip" of value from existing operations and people.

1. Efficiency-Based Company

2. What is itNot “Innovation-based Company”?Innovation based company grows with power of innovatingProduct: innovative products and service, opening new opportunity, creating new strengthProcess: changing itself and evolve to be the frontmostSo why not?Not-supportive environmentManagement that can’t moveStakeholders won’t take the cost for the change or it will shake the flow beyond toleranceThe business itself doesn’t lend much room for innovatione.g.: labour-intense factories with single timeless product (such as cigars)

3. What is it (cont.)Efficiency-based companyIs a company where it’s survival and growth depends mostly on efficiency to use resource and potentials it has more than any other meansIn rude way of speaking, company that grows by milking every last drip of sweat and blood from its laboursUsually large companyFirmly grounded massive structure and process that are difficult to modify radically without taking cost and victims in the processHas grown big that demand of growth more or less looks unrealistic compared to the market situation

4. Being efficientKeeping operational cost low rather than growth from incomeIdeally operation would grow as company growGrowth demanded has become too difficult to achieveE.g. 15% growth in multi-billion Dollars business in stalling marketUsing previously untapped potentialsThe “milking every last drip” attitudeRaising stakes for individual targetsOvertime become norm to reach targetIdeally overtime is to achieve more than targetted

5. Cost cutting measuresSlow growth of workforce number“use what we had in hand” attitudeHigh but controlled use of “disposable” outsource employeesEarly retirement offersSlow vertical movementsSlow promotionReducing need of raise and benefitsCut of benefitsHealthcare, familyRestructurizationFrequent changes to remove workforce in order to stay “lean and mean” in the market