In our organization diagnostic work we often compare finding the root cause of an organization issue to finding the root cause of an illness. This medical metaphor has recently become even more useful because the medical industry in North America is starting to hold itself responsible for outcomes, rather than
Welcome to the era of hyper-competition, outsourcing and cost reduction. As if the pressures of day-to-day operations weren’t enough of a burden, the demand for growth continues to be on the mind of executives.
But how can an organization be expected to keep costs under control and grow at the same time? It’s a challenge confronting even the best HR organizations. Nevertheless, growth and cost reduction can be designed into the same organization.
Growth germinates from the distinct value offerings an organization offers customers, especially when the value is greater than that offered by the competitors. And growth is sustainable when differentiation is designed into the organization. Therefore, increasing productivity and lowering costs for activities that don’t create competitive advantage constitutes the smartest type of pruning.