Pain

Profit

• Administrative costs are growing while staffing level is constant

• With the downturn in the economy, our product pricing is out of line with customer needs

• Implementing change has become very expensive due to internal resistance by key staff and executives

• Our specialized processing and transfer costs in manufacturing has cut into our margins

• We keep fixing the same problems over and over again

• Capital costs for manufacturing are constraining our ability to expand

• Our IT department spends 80% of project time to keep the lights on

• Staff turnover has impacted productivity and delayed key projects

• SGA (selling & general admin) are lower than the industry average, but do not undercut staff and sales operations

• Products are designed and manufactured to optimize the most important desired outcomes, which keeps their pricing at or below competitors

• Change is easily introduced since the culture embraces change and the policies and systems support adaptation and are resilient

• Operations are continually implementing ideas to improve efficiency and reduce complexity

• Our IT department only spends 20% of its budget and resources on KLO (keeping the lights on), while 80% is devoted to driving growth and delivering new capabilities

• Investment in training and employee development combined with a culture of empowerment and trust has virtually eliminated turnover

• Manufacturing has replaced specialized equipment with multi-functional equipment (higher initial costs) that can be used to manufacture a much wider array of products with a reduced need (and time) for change over