© Les Cowie Consulting LLC, 2015 All Rights Reserved
At the heart of the book, “Getting More with Less” is ‘The Profit Pillar’. We use it to view different organizations from a standard perspective.
All enterprises whether manufacturing, commercial, service, hospitality, or even city, state or federal government have a similarity in their functioning. They have the same layers of functionality. Within each functional layer, they have similar ‘master’ processes needed to operate successfully in order to survive and grow. “Getting More with Less” requires that each of these functions and departments is managed as productively as possible.
‘The Profit Pillar’ shows there are five layers of functionality that apply in every organization. There are specific functions (departments) within each layer. Most processes require transportation and security. Each function typically requires facilities, equipment, supplies, trained people, instructions, information – and must produce quality, on-time delivery and performance. Each process requires funds and has its own cost structure.
“Getting More with Less” requires that executive teams review each functional layer in an organization and each of its departments. In the review of each department, the team, in a few scheduled meetings, will creatively examine the processes within each department to identify the 20% of process elements that account for 80% of the time and impact throughput and cost.
Too often, organizations under pressure leap to cutting the cost of staff. This often results in not being able to maintain the necessary level of throughput and services. Cutting staff and labor may hold profitability and dividends at the same level for a while but often erodes the organization’s position of leadership and growth in its markets. As a result, stakeholder value may be negatively impacted.
Stakeholder Value is the only legitimate measure of success.
“Getting More with Less” requires researching each of the departments in every functional layer to identify the predominant contributors to throughput, performance and cost and to think up creative alternatives that will improve throughput at an ultimate lower unit cost.