Often the work of consultants in the organization of the customer resembles the notorious doctor’s appointment, when a patient “diagnosed with medical issues” who has made his own diagnosis, requires an immediate effective treatment from the doctor. So the owner believes that he himself knows the weaknesses of his company and he needs only immediate effective action to address them. And the help of employees to specialists of a consulting company consists mainly in getting into a debate about how the word marketing should be pronounced, which does not play any role for their daily practice, but they restrict its functions to studying competitors’ prices in order to offer lower, than market ones, believing that they will thereby ensure the competitiveness of their product. However, the task of organizational diagnostics does not come down to pulling the competencies of the customer’s personnel to the required level, but consists in deeply “immersing” the consultants in the customer’s organization, their painstaking detailed work lasts from three months to six months, which makes it possible to become related to it and reach the level of all performers, review the workflow, conduct an audit of the staff, study the ongoing processes, in order to develop standard techniques for their improvement and give comprehensive advice to eliminate the shortcomings. Continue reading
Today on TV you can often hear the phrase: “You need to live within our means!” In other words, you can’t spend more than you earn. This phrase is uttered by the heads of state and the “heads” of regions, referring to the revenue and expenditure items of state budgets. The same thing in business: expenses should not exceed revenues! And the “Rule of Five Wallets” helps us throughout the life of our enterprise to properly and rationally manage investment and operating expenses. How? Let’s get it right.
numbering-small.pngToday and tomorrow
We have already spoken with you that the “Rule of Five Wallets” does not divide expenses into fixed and variable, but into the following: Continue reading