Philosophy Driven Business

With all the emphasis today on corporate Mission Statements and the philosophies that are supposed to be guiding an organization many have lost site of the basics of business development and management.

Instead of sound business management practices businesses are embracing the latest manager's idea of what makes a good business. Persuasion and making a sale are at the forefront of corporate development. Those are the big money makers. There is some benefit to having a good image persuading others that you are the company to do business with but by neglecting the actual production and management of the business most businesses today are quite fragile.

Some of the most idiotic things that have been implemented indiscriminately are downsizing and outsourcing. These are very popular among businesses that are going down. In the short run these are good cash flow remedies and they are often required but they rarely reflect the growth in a business.

Outsourcing a service may be an indication that the company can't find or keep competent personnel to effectively manage an area but in most cases cash flow is the primary purpose.

In the management of inventory there is also the JIT philosophy. JIT says that we should manage inventory so that it arrives "just in time" for production. This also minimizes cash requirements for maintaining an on-site inventory. Of course there is an additional cost for JIT services. After all someone has to maintain an inventory. JIT will help if we don't have the finances or competent staff to maintain our own inventory. Then there are issues with the effectiveness of JIT.

In major corporations organizations and education affiliations and collaborations are invaluable. In most cases there is actually an increase in the costs to manage it but when there are new developments or research successes each organization can claim credit.

And then there are a host of mid-level management philosophies such as the idea I heard this week that "our technology must meet our needs instead of our needs meeting our technology." Or was it the other way around? I guess that's an indication of just how idiotic business management is today.

Every day you can read about some new philosophy that some consultant or vendor is selling; or buying. Ironically the sellers believe in it and are just as ignorant as the buyer.

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