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The Myth |
The Truth |
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Companies must be lean and mean to survive. |
Productivity can be independent of size if we work at it together. |
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Objective |
To maximize short-term profits. |
To maximize productivity over the long-term. |
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Method |
Reduce head count by selling off business units and terminating employees. This company retreats to Core production mix, offering generic products and services. |
Build synergies by using business teams and collaborative work systems. This company pursues high-value added, custom production. |
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Beneficiary |
Shareholders (over the very short-term, while it lasts). |
The members of the company, and their customers, suppliers and other stakeholders, eventually including shareholders (over the long-term, in perpetuity). |
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Employee Outcome |
Overwork, increased stress, withdrawal, absenteeism, fear of job loss, decreased performance and skilled- employee turnover. |
Increased autonomy and empowerment, more rewarding work and higher commitment to the company. |
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Customer Outcome |
Decreased quality of service, greater exposure to errors and delays, less choice, less support. |
Increased quality of service, improved reliability, more choice, better support. |
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Market Outcome |
This company’s reputation erodes as customers become disenchanted, turning to other suppliers. |
This company’s reputation is enhanced, and customers become more loyal. New customers are lured away from the competition. |
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