A Real Gold mine
The 'M' Factor:
As we know, many of us feed White Elephants during good times and during bad times we are just the opposite. The measures are so extreme during tough times. The same is the case, for large organizations and multinational corporations
The decentralized arrangement, operational freedom for leadership and the organizational culture - all of these drive management decisions on either of the extremes.
During good times, If an individual base his life on thrift and minimalism, he/she goes through the tougher economic situations gracefully with minimal challenges. The example holds good for organizations as well.
Staffing:
The Right staffing at the individual unit to department level is the necessary evil, and we need to drive it. This is something not seen by managers as a desirable practice since they like to have a larger span and there is a competition as well across the organization. Mr. X controls such a large team!
However, this comes as a big pain during tough times such as Covid, and the manager who held a large team takes the larger hit of the whole pie. Off all of the decisions, making the people leave an organization is a painful experience and not so graceful decision on the part of the managers.
To avoid this non-enviable situation, managers need to use industrial engineering techniques for right staffing or also use their black belts effectively to study, revisit processes from time to time post automations, improvements and restructuring.
Equally a top heavy organition also adds to the feeding of the white elephants. But who will bell the CAT?
Usage of Resources:
This is something a unknown area for many of the organisations. The right use of paid resources including site infrastruture - area of square feets to people density, use of prime real estates, grand, undue use of lighting, lavish use of transports such as office cabs are all vary from an organization to another organization. Therefore, an optimal use and benchmarking need to be achieved in line with standards followed like LEED.
For example, in the centralized office environment, maintenance of right workplace temperature and increase of the temperature by one or two notches, depending upon the seasons/weather reduces the electricity consumption by a whopping $ numbers.
In the other example, switching off unnecessary lighting, and individual air conditioners during non office hours gives a great savings
During weekends workings, instead of multiple floors being operational, enablement of restricted number of floors with airconditioners and lighting gives us a lot of $ savings.
Case Capsule:
In large organizations, there are plenty of opportunities for savings. Efficiencies can be gained over effective use of real estates, converting wastes into a resource, Savings through optimum staffing, eliminate unnecessary expenditures on utilities and consumption materials.
This case study provides some opportunities which can be looked at, on a continuous basis rather than at the time of distress. It also eloborates on the approach to be followed as part of the Project execution process.
Streamling consumption materials:
This is something an unknown cost from the organizational point of view and not many companies look into this, because it looks immaterial.
But non monitored use of Paper cups, Tissue papers, driking water, coffee, cool drink dispensers, electrical equipments, replacement of office equipments all may throw a very big bomb to the bottom line. These elements, may add to a large scale malpractices in an office environment. Eventhough it is not an area of interest for a small organization but big organizaions may be spending from their deep pockets!
Therefore, the office infrastruture is no longer an area of insignificance, but an area of potential savings.
Waste Management:
Use waste as a resource and rightfully monetizing them may not be seen as important but it has great potential.
Many of the industrial wastes, has the market potential in the backward or forward integration of industries. For example, Brass and other industrial metals, Waste paper, there are many to name here.
For example, useful finished products and spare parts may be disposed off as industrial waste through the connaivance between a manager and the contractor.
Takeaways:
Organizations and managers need to have vision to generate savings over a long period of time. This can't be temporary measure.
Every small $ adds to the bottom line and organizational savings. Large thriving organisations do it silently for a long time.
Executive & Managers need to drive their agency functions effectively. This makes the organisation very effective.
Savings does not comes out automatically. It is by having appropriate controls and oversight over processes.