The Speed of Change (SOC) versus Throughput Time (TpT)

…a company and their products or services just exists to provide a decent ROI (profit) on the invested money from the owners/shareholders/investors (nothing more, nothing less)…
...not to give the employees a decent job...this last one is a lucky consequence, not a cause...

…a company’s organisation addaptation possibility or speed of change is always slower than the speed of change of the targeted market and their clients…

2 main reasons:

1. Any prediction or forecasts is mainly based on history or historical experiences
2. Many company have a much too long adaptation TpT because of their slow SOC

Thats why many organisations always are running behind the facts...
Especially big multinationals are too slow to start already reducing costs before the sales are going down...

Conclusion:

There is no other choice for a company as to focus on a lean business structures and processes in order to have the flexibility to change fast and in line with the markets and the clients to

1. add more value to the customer
2. reduce costs for the company
3. lower the throughput time

And as mentioned above, this can only be achieved by a well designed Business Process (BP) which is kept up-to-date to the market through a continuous re-engineering of that process (BPR).

To be continued …