Part 4… More of ‘What’s in it for you?’

As you know, I have been talking about efficiency for quite a while. Of the many definitions, I see efficiency as the ability to accomplish a job with a minimum expenditure of time and effort. I have to believe that a company’s main objective is to reduce costs, increase quality, increase revenues and, finally, increase profits.

The last several ‘ideas’ covered reducing costs, increasing quality and increasing revenues, this one covers Increasing Profits.

On the Topic of Increased Profits

Obviously - If you really can reduce your costs and increase your product or service quality and increase revenues, your profits will have to increase.
One reader pointed out that you may be able to make one process more efficient, but adjacent processes may prevent you from actually achieving shortened cycle times. Obviously, more processes within your company make it harder to achieve efficiency. But does that mean you don’t try?

One strategy that I have learned over the years is to ‘plan the work and work the plan’. If you don’t make an effort to be more efficient, you definitely won’t get there. So, do some strategic planning – and go work the plan.

One side note – When a company is going gangbusters [sales through the roof] they tend to ignore inefficiencies. When that company is struggling for revenues and profits, then they begin looking to be more efficient. Obviously, it is much easier to attack inefficiencies when there are revenues and profits.

Your Thoughts…