Why change? Taking the Lead from Best Practice
- Every year improvements are made to the data-based and analytical software systems produced by the likes of Agresso, Sage, Microsoft, SAP, ERP, Oracle, IBM, Tableau,Tibco, CRM, IRIS, SAPPHIRE and other. These software systems are geared to helping managers improve their performance in all aspects of management. But one critically important area is not covered. This is “performance improvement maximization and the creation of a deep-rooted performance improvement culture”. Centimex is the only performance improvement software system that directly sets out to address this important area of management and to create the performance improvement culture required to maximize the success of organizations
- At no time, since the last great depression, has their been such a need for the creation of a deep-rooted performance improvement culture, particularly in the Western World. In previous economic downturns, reducing “people” costs has been the key focus because they have been easy to identify and address. But, this time, just cutting back on staff numbers alone will not solve the problem because this won’t create the major productivity improvements required by most organizations in a the developed world, both in the Public and Private sectors. What is required is a total commitment, not just by management, but by everyone in an organization to identify and successfully implement every possible performance improvement opportunity and to make their organization “the best”
- Reports from leading Management Consultancy firms show that some US businesses are beginning to take back markets from lower cost economies, particularly where customer dissatisfaction with products or services are concerned. But most important of all, some US Businesses are finding competing on price with the products and services from lower cost economies is not as impossible as they had thought, especially in some important areas. If shipping and offshore administrative costs are taken out of the equation and real attention is devoted to significantly raising staff commitment and motivation levels and to the elimination of poor operating systems and work practices, organizations are beginning to realize that the “price gulf” is not as big as they had thought
- Financial accounting systems are designed to record costs and revenues. These are generally structured around product and organizational structures. Management accounting systems are designed to make operational decisions. These systems are typically also structured around product and organizational structures. Activity Based Costing was developed to address this focus and aims to allocate costs at an Activity Level. This whole arena has struggled with the definition of 'what is an activity' and 'what is a process'?
- Current software systems are not geared to maximizing performance improvement identification. The General Ledger is designed to measure profitability. The supporting data systems are designed to support business decisions - not optimize them. The real performance improvements are left to the spreadsheet jockeys - and this is prone to error and duplication and is costly
- And worst of all, the whole improvement processes tend to ignore the people in the middle - the people needed to make the change happen and to make the changes stick