Monday, February 16, 2004

The Anorexic Organization

It seems to us like the spiral has turned and innovation is once more coming back into people's consciousness.

In truth, after all the lean - mean - fighting machine strategy and the resulting downsizing, cutbacks, budget crunches, retirement binges, out-sourcing and stockholder value manipulations, it's the only thing left to improve productivity. And, guess what, innovation is really hard work.

(Innovation can reduce cost as well without the surgery. It can make people more productive enabling more revenue generating projects.)

Cost reduction (at all costs) without innovation can become almost like a disease - anorexia. Once addicted to it, it's hard to change behavior. And, like the anorexic, if it goes on too long, there is too much damage to the internal organs for recovery. We think many organizations will not make it.

Innovation can create real wealth. Cost cutting temporarily redistributes it.

Paul Schumann & Donna Prestwood

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