The problem with continuous improvement is that it can be really hard work. But, just like its glamorous sibling, achieving lasting and positive cost reduction requires creativity and imagination. Most continuous improvement initiatives begin as a last minute and unplanned way to ‘make budget’. The focus is short term and as a result the approach can be a destructive ‘slash and burn’. Managing costs should be a strategic decision not an ad hoc reaction to short term revenue failure.

The hard work of continuous improvement occurs because it is often seen as boring and internally focused. And it often is! Cost reduction is seen as being ‘tight fisted’ and squeezing more out of the lemon or getting blood from a stone.

Also, whatever cost base exists is a reflection of the past management, after all somebody set up the system or allowed the development of the current cost base. This poses a problem for many because it can be seen as admitting past failures. This is also the reason why it often takes a change in management to kick start a true continuous improvement initiative.

It is because of these issues that people take short cuts and this leads to mistakes and unsatisfactory outcomes. The book A New Strategy for Continuous Improvement explains all the issues with continuous improvement activity but the eight reasons why continuous improvement efforts fail are:

There is no base to build upon - Most continuous improvement initiatives just start with whatever systems the company has in place at that the time. They do not review the suitability of those systems or what can change to provide a ‘good practice’ base for future activity.

They rely on finding breakthroughs – Too often companies spend their time and energy looking for the leading edge breakthrough that will change everything. Unfortunately this approach diverts attention from applying the simple and known solutions that already work.

They try to ‘reinvent the wheel’ – Few companies are in the business of management innovation yet too many want to develop management systems or overly customize something to their business. If you are in the early stages of continuous improvement just copy something that works. Later, as part of your improvement processes you can work on evolving that more specifically.

They ‘cherry pick’ good practice – Often it seems easy to try and identify the single element of good practice that is the key to another company’s success and apply that to your own business. This ignores that the result is likely to be systematic and comes from having established a sound base to build upon (see item 1).

They are too hung up on efficiency – In my view efficiency is over rated. Companies that strive for efficiency need to be sure that they are being effective first. There is no point in doing the wrong thing very well.

They don’t pay attention to the little things Franchising and Prohibited Transfers
In the world of franchising often be franchise outlet or franchisee will wish to sell their rights under the franchise agreement to another party. Since this is a common occurrence amongst franchisees it makes sense to have a clearly defined franchise agreement, which addresses potential or problematic transfers. A franchisor may wish to have a clause in the franchise agreement, which actually prohibits certain types of franchise transfers. And there might be a number of reasons for this. Below is a clause that I put into our franchise agreements all prohibited transfers;5.2.6 Prohibited TransfersFor pues begin as a last minute and unplanned way to ‘make budget’. The focus is short term and as a result the approach can be a destructive ‘slash and burn’. Managing costs should be a strategic decision not an ad hoc reaction to short term revenue failure.

The hard work of continuous improvement occurs because it is often seen as boring and internally focused. And it often is! Cost reduction is seen as being ‘tight fisted’ and squeezing more out of the lemon or getting blood from a stone.

Also, whatever cost base exists is a reflection of the past management, after all somebody set up the system or allowed the development of the current cost base. This poses a problem for many because it can be seen as admitting past failures. This is also the reason why it often takes a change in management to kick start a true continuous improvement initiative.

It is because of these issues that people take short cuts and this leads to mistakes and unsatisfactory outcomes. The book A New Strategy for Continuous Improvement explains all the issues with continuous improvement activity but the eight reasons why continuous improvement efforts fail are:

There is no base to build upon - Most continuous improvement initiatives just start with whatever systems the company has in place at that the time. They do not review the suitability of those systems or what can change to provide a ‘good practice’ base for future activity.

They rely on finding breakthroughs – Too often companies spend their time and energy looking for the leading edge breakthrough that will change everything. Unfortunately this approach diverts attention from applying the simple and known solutions that already work.

They try to ‘reinvent the wheel’ – Few companies are in the business of management innovation yet too many want to develop management systems or overly customize something to their business. If you are in the early stages of continuous improvement just copy something that works. Later, as part of your improvement processes you can work on evolving that more specifically.

They ‘cherry pick’ good practice – Often it seems easy to try and identify the single element of good practice that is the key to another company’s success and apply that to your own business. This ignores that the result is likely to be systematic and comes from having established a sound base to build upon (see item 1).

They are too hung up on efficiency – In my view efficiency is over rated. Companies that strive for efficiency need to be sure that they are being effective first. There is no point in doing the wrong thing very well.

They don’t pay attention to the little things Tales from the Corporate Frontlines: Diversity And Success, In The Workplace
This article relates to the Diversity in the Workplace Competency, commonly evaluated in employee satisfaction surveys. This competency explores whether your organization provides understanding and supports interaction among diverse population groups while respecting individuals' personal values and ideas. Research shows that by fostering a climate where equity and mutual respect are intrinsic, an organization can create a success-oriented, cooperative and caring work environment that draws intellectual strength and produces innovative solutions from the synergy of its people.All businesses can benefit from a divee it can be seen as admitting past failures. This is also the reason why it often takes a change in management to kick start a true continuous improvement initiative.

It is because of these issues that people take short cuts and this leads to mistakes and unsatisfactory outcomes. The book A New Strategy for Continuous Improvement explains all the issues with continuous improvement activity but the eight reasons why continuous improvement efforts fail are:

There is no base to build upon - Most continuous improvement initiatives just start with whatever systems the company has in place at that the time. They do not review the suitability of those systems or what can change to provide a ‘good practice’ base for future activity.

They rely on finding breakthroughs – Too often companies spend their time and energy looking for the leading edge breakthrough that will change everything. Unfortunately this approach diverts attention from applying the simple and known solutions that already work.

They try to ‘reinvent the wheel’ – Few companies are in the business of management innovation yet too many want to develop management systems or overly customize something to their business. If you are in the early stages of continuous improvement just copy something that works. Later, as part of your improvement processes you can work on evolving that more specifically.

They ‘cherry pick’ good practice – Often it seems easy to try and identify the single element of good practice that is the key to another company’s success and apply that to your own business. This ignores that the result is likely to be systematic and comes from having established a sound base to build upon (see item 1).

They are too hung up on efficiency – In my view efficiency is over rated. Companies that strive for efficiency need to be sure that they are being effective first. There is no point in doing the wrong thing very well.

They don’t pay attention to the little things Medical Transcription Students – How To Make Extra Money
So you’re taking a medical transcription course but really need to make a little extra money. It’s difficult being a student and having to work only part time or not work at all. But there may be a few things you can start doing to money until you finish your course.If you really want to work from home, then consider general transcribing until you finish your MT course. This will give you lots of typing practice and listening skills while making extra money.The first step is to find a few clients. You can use inexpensive advertising strategies to do this. Make out some simple flyers on your computer and pasan change to provide a ‘good practice’ base for future activity.

They rely on finding breakthroughs – Too often companies spend their time and energy looking for the leading edge breakthrough that will change everything. Unfortunately this approach diverts attention from applying the simple and known solutions that already work.

They try to ‘reinvent the wheel’ – Few companies are in the business of management innovation yet too many want to develop management systems or overly customize something to their business. If you are in the early stages of continuous improvement just copy something that works. Later, as part of your improvement processes you can work on evolving that more specifically.

They ‘cherry pick’ good practice – Often it seems easy to try and identify the single element of good practice that is the key to another company’s success and apply that to your own business. This ignores that the result is likely to be systematic and comes from having established a sound base to build upon (see item 1).

They are too hung up on efficiency – In my view efficiency is over rated. Companies that strive for efficiency need to be sure that they are being effective first. There is no point in doing the wrong thing very well.

They don’t pay attention to the little things Only in a Town for a Short Stay? Consider the Established Look of Executive Suites
Here is a creative tip for giving temporary office space a look of permanence. Discover 'executive suites'.No...we are not talking about expensive ivory tower offices. The term 'executive suites' is a concept ...not a brick and mortar location. It is ideal for anyone needing temporary office space in almost any city of the world.Consider just a few of the many advantages for using executive suites: You can move into this type of temporary office space in a day...and move out in a day.Because executive suites can be obtained fully furnished and staffed, there is nothing to syou can work on evolving that more specifically.

They ‘cherry pick’ good practice – Often it seems easy to try and identify the single element of good practice that is the key to another company’s success and apply that to your own business. This ignores that the result is likely to be systematic and comes from having established a sound base to build upon (see item 1).

They are too hung up on efficiency – In my view efficiency is over rated. Companies that strive for efficiency need to be sure that they are being effective first. There is no point in doing the wrong thing very well.

They don’t pay attention to the little things – It is also too easy and popular to take the ‘big picture’ view and it is often assumed that things will just work. This is especially the case when human intervention is required to document details. In a recent case a company spent millions of dollars on new inventory software only to find that their team did not complete the required daily updates. This meant that their data was out of date and their original problem was not resolved. They are now focusing on changing their culture and this will lead to the delivery of their main benefits.

They are locked into a silo approach - Business structure often impacts the way we see the world. If someone is busy trying to optimize their own small part of a company in isolation from the surrounding departments, suppliers and customers with whom they interact, it is likely that the result will be suboptimal.

There is no process of renewal – Finally, having completed the tasks required to achieve their immediate goals many companies then change focus onto some other problem. However, if the cost base is not regularly reviewed in line with changes that occur in product, customers, technology etc. then the problem is not resolved only temporarily addressed.

Good continuous improvement requires a long-term view, imagination, creativity and innovation. Success can be achieved through doing things differently, being systematic in your process and making continuous improvement a strategic choice.

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.casualarticles.com/article/20875/casualarticles-Why-Cost-Reduction-Efforts-Fail.html">Why Cost Reduction Efforts Fail</a>

BB link (for phorums):
[url=http://www.casualarticles.com/article/20875/casualarticles-Why-Cost-Reduction-Efforts-Fail.html]Why Cost Reduction Efforts Fail[/url]

Related Articles:

Yellow Pages Advertising: Are You Wasting Ad Dollars?

If you're going to hand over all that cash every month to your publisher, run the most powerful, phone-call-generating Yellow Pages ad possible. Otherwise, tear your business out of the Yellow Pages and invest your money wisely, elsewhere.

Compliance Jobs Interview Tips - Insurance Recruitment Advice

When you get an interview for a compliance job it’s important to think in advance about some of the questions that you may be asked. Some foresight about the topics you may be asked about can have a real impact on how likely you are to get the job.

Job Search On The Web

Online job search is growing in popularity. Career searching has never been easier. With job sites like Monster, CareerBuilder, Dice.com and others the selection of jobs has never been broader. Neither has the amount of searchers...

Bookmark it: