Operational Efficiency
Cut your coat to fit your cloth
Should we budget based on our bank balance or our wish list? There is an old saying : “Cut your coat to fit your cloth”. We should make our plans based on the resources we have, not what we wish we had. I had reason to reflect on that recently for personal reasons which I…
Read MoreProductivity is simple … and complicated
What is productivity? Productivity is both simple and complicated. Productivity measures the efficiency with which we convert capital, labour and materials into outputs. It is simple because we measure productivity by units of output divided by units of input. Lots of different inputs make productivity complicated. It may not be obvious how those inputs interact…
Read MoreOpportunities we miss
I live in Wellington, New Zealand, the windiest city on earth. But as I walked through Parliament grounds this morning, all the flags were hanging limply. It is a clear, still, mid-winter day. The harbour is flat as a pancake, perfect for kayaking or paddle-boarding but…there are always opportunities we miss. Why we miss opportunities…
Read MoreDoing things badly costs money
One short piece of free advice: “Doing things badly costs money.” I’m a management consultant. Recently someone asked me if that meant giving people advice all the time. I replied that it was more about observing and asking questions. We then analyse and apply lessons from one context to a different one while taking account…
Read MoreGhost benefits and real project benefits
Ghost benefits are scary. They threaten to use up your money, time and reputation with nothing to show for it. Ghost benefits are the imaginary gains from projects that haunt business cases, PowerPoint presentations and project meetings. Most people know they aren’t real but they won’t say anything in case little Jimmy still believes in…
Read MoreBack office projects can deliver clear payback
Payback on back office productivity projects Back office productivity projects should deliver clear payback. That may be reduced process time, less rework, fewer errors, faster throughput, less waste, fewer handoffs, fewer complaints, higher staff satisfaction, better profitability, more timely data, higher customer satisfaction, etc. These benefits can and should be defined and measured. They can…
Read MoreHow does ERP add value in a property business?
An Enterprise Resource Planning (ERP) system can help a property business deliver its strategy. It is up to each business to decide what that means. How does ERP help deliver strategy? Strategy delivery may mean ERP or any system is not a magic bullet No ERP or other property system is a silver bullet for…
Read MoreThe Value for Money (VfM) gap
What is the Value for Money gap? The value for money gap is a lack of confidence that money is being spent on the right things and in the best way to get desired outcomes. It arises when spending choices do not reflect perceived priorities and when spending is seen as wasteful. It is subjective…
Read MoreBack office key to delivering strategy
The back office is key to delivering strategy. Operational excellence is a deliberate state created by people, processes and systems aligned to create value. It doesn’t happen by accident. We know that making back office functions work better is more effective than wholesale cuts. Optimising back office operations is strategically important. In fact, a well-designed…
Read MoreERP return on investment (ROI)
Enterprise Resource Planning (ERP) systems promise benefits but it takes time and effort to achieve the promised results. You need a recipe for success. An ERP system return on investment (ROI) is not guaranteed. In 2012, Auckland city forecast a NZ$10 million per year return on its SAP ERP system investment of NZ$71million. By 2014…
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