The Wall Street Journal headline today (August 12, 2009), page A2, was “Productivity Leaps as Companies Reduce Costs”. Does that include you?
The US productivity had the highest gain during the second quarter in over five years. Many have been effected by other company’s reducing costs. It may even effect your revenue. Yet, as you work to increase your revenue are you balancing that out by paying an equal amount of attention to the other half of the profit equation? Expenses. Remember, profit equals revenue minus expenses. As Robert Kiyosaki, the author of Rich Dad, Poor Dad has written, it’s not important how much you make but how much you keep. If you reduce your expenses, you can keep more of what you already have. Increasing revenue is not the only answer to increasing your profit.
PDCA has saved millions of dollars providing process improvement, primarily, to the commercial transportation, trucking and logistics industry. From basic to expanded engineering services, PDCA has formulated and implemented strategic and tactical plans in Fortune 100, Internet startup and entrepreneurial companies, among others. As a result productivity, profit, capacity, quality and the customer experience improves, while costs drop.