Productivity increase = Wealth creation

The maths are simple, do more with less, and you have more left over at the end.

Productivity is not just something you aim for in the factory, the opportunities to do more with less are  everywhere, in every activity undertaken.

The catch in all this is, when you identify the opportunities, free up the capacity by doing more with less, and figure out how to make the necessary changes “stick”, you have a choice to make:

  1. You  remove the now redundant resources, and pocket the difference, or,
  2. You sell the added capacity that is already “paid for”, so you get the added revenue at an enhanced margin.

Sounds seductively easy, but in fact it is a tough road, littered with challenges, and nasty potholes for the unprepared.

About strategyaudit

StrategyAudit is a boutique strategy and marketing consultancy concentrating on the challenges of the medium sized manufacturing businesses that make up the backbone of our economy. The particular focus is on their strategic and marketing development. as well as the business and operational efficiency improvements necessary for day to day commercial survival. We not only give advice, we go down "into the weeds" to ensure and enable implementation.
This entry was posted in Change, Governance, Lean, Operations and tagged , , , , , . Bookmark the permalink.

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