Performance Improvement…the Cost of Doing Nothing!

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Beneficial Change requires investment, but doing nothing costs far more.

It isn’t the extent or the pace of change, which is surprising, but the extent to which so many companies seem reluctant to embrace beneficial change and instead, do nothing.  For many, the rate of change has been stuck in neutral for far too long and it is beginning to show in their annual audited accounts.

Doing the Same Things, but Expecting Different Outcomes?

Whilst we design, manufacture, supply and support leading edge true state-of-the-art performance improvement systems, we do not always see the rate of ‘take up’ and performance improvements amongst our clients that they expect to see.  As the system is unequalled, let alone surpassed, the lack of engagement on the part of our clients is almost always the cause. Whilst it might be easy for us and our clients to see the weaknesses in the status quo, the fear of moving away from what they have always done, and embracing something new, is ever present.

Machiavelli recognised this more than 500 years ago in his novel, The Prince, which led to one of his most famous quotes:

“There is nothing more difficult and dangerous, nor more doubtful of success than an attempt to introduce a new order of things.”

Spending Nothing is not the same as Costing Nothing!

Companies paralysed by inertia, will often justify ‘doing nothing’ with ‘we’ve always done it this way’.

Private companies must remain competitive in order to avoid losing market share, but many are having a tough time. The Government is threatening to legislate in order to force supermarkets to reduce prices. If this happens, it’s likely that the supermarkets will put even more pressure upon their suppliers, squeezing them still further.

In June 2023, compared with the same period last year, bankruptcies were up by nearly a third.

Performance Improvement: You Can’t Improve What You Don’t Measure

With ever increasing raw material prices, legislated annual minimum wage increases, a shortage of factory floor labour and the supermarkets pushing for further reductions in price, the food and drink manufacturers must look inwardly to reduce their transformation costs.  To make these improvements, measurement becomes increasingly important.  It is virtually impossible to chart improvements if you have little understanding or metrics regarding the starting points. Measurement cannot be done effectively or continuously with pencil and paper, so an accurate analysis of the starting points is essential.

Choosing the Right CI System and Partner

Choosing the right system and performance improvement partner is essential. The right partner will understand your business, appreciate the risks and challenges that you face, will have an in-depth understanding of the difficulties encountered in the successful implementation of change and be enthusiastic to work with you to ensure the fullest understanding and engagement. Reduction of wastage and improvement of efficiency at every opportunity is now more essential than ever in order to survive, even thrive, in this increasingly competitive marketplace.

We’re here to help. See us at the PPMA Show, Birmingham NEC, on Stand B46 or give us a call +44 (0)1225 764461.