Productivity needs to improve!
Assets need to be stable!
Costs are too high!
Where are all the management gains you told me about?
Steps A and B will get you back on track and help stabilize the bottom line. But we also need to go in the right direction. And we need a game changer!
A. You need performance enhancement as your assets are not delivering what you want at the cost efficiency you need.
B. First we help you get back on the old course of where you were…
C.….then we build on the processes developed to get you where you need to be.
D. Cost cutting and staff reduction wont do this long term….
E. Cost cutting actions extends success period but does not change the game.
Most transformation processes you see are being implemented because you are in a mature state but the market has changed. Your productivity is average and your costs too high. Typical decisions taken are to reduce staffing levels, optimise inventory and cut operating costs.
This offers short term wins but reduces innovation and doesn’t affect top line growth.
Once we have got back to normal, then increased productivity, we can stabilize the operations and look to innovation and direction. This process ensures investments are in the right place and in the right direction otherwise we will continue to see poor results and leakage. (…potentially enhanced through knowledge reduction and cost cutting following expert advice.)
A combination of active workshops with your teams, challenging the trending done on historical market conditions will remove some cognitive bias and open your business culture to the transformation culture needed for change.