Many companies I have encountered search for ways to save "in the spotlight", meaning areas where it is easy to see and to attribute to a particular focal point in pricing – for example, purchasing, defective product, work costs or logistics. And an action whose objective is to strengthen employee bonds falls under Welfare and is usually considered a luxury, ending up being the first thing to cut.
If we address the 20% of principal products manufactured (see example later on), we can attain a significant improvement in results (eg. profits). In this way, we can concentrate our efforts and resources and be decisive and efficient.
Sometimes it seems to me that CEO's are afraid to confront management members who are not maintaining objectives. Instead of demanding a plan of action to attain the objective, the CEO herself explains to herself why they haven't attained their sales, production or other objectives.
The guiding principle behind our work leads a company to improvement and does not provide it with advice. We work this way for several reasons: Firstly, we, as people, don't like to receive advice, and therefore, improvements in work methods that are obtained as external knowledge and not as a product of internal work, shall encounter opposition or will not be implemented in the long term.
Many companies wish to improve their performance and seek strategic advice as well as marketing or organizational development strategies, and when they receive advice, opposition emerges throughout the organization and ultimately this advice remains untouched in a book.
Thirteen important management principles to build a growing company and generate profit: A lecture in Prof. Dov Zohar’s seminar for MBA course at The Technion, Israel Institute of Technology.