Sunday, March 7, 2010

Cutting Waste

Each company has a leadership and their role is to constantly ensure the highest productivity with lowest input and operational cost. Each company emphasize on saving bottom line which is needed to achieve higher margins and survival during troubled times. However, a majority of organizations tend to waste company resources. The best way of running a company is to think that you own it. This way you will ensure higher productivity for yourself and make decisions that cut on the waste.

The people on top rung are the wicked one. Let me explain how they squander company resources. During foreign visits, they get a fixed amount for their daily travel and meal expenses. The plot they weave makes them save a lot. They take one client everyday on a lunch/dinner and submit the bill to the company as business expense. This way they save on their meal amount and get more through business expense bill. During customer visit, they make a habit of entertaining customers in most expensive hotel. This way they enjoy a free meal with a customer, no matter the financial resources of company are getting corroded. The most wasteful expense is travelling to and fro to different offices for engagements that are of no value. The objective can be realized by a simple video conference which will cost pennies, though they make sure to squander at least few thousand bucks flying from one destination to another. Another trend is of management meet, where people in top management stay at some resort to discuss future direction for the company. The bill of staying at the resort and flying to the destination is enough to compensate 10 employees for a year .

Most Managers are not clear about the goals they have to achieve. They create assignments that have no lasting value for the organization. Their team indulge in completing these assignments wasting several hundred man hours. This creates frustration among the team and is a major cause of employee turnover.

The managers are an example to their subordinates who learn from them and waste company resources as when the opportunity arrives.

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