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Profit-Ability & Empowerment...

The ability to produce profit, or "Profit-Ability," is a skill that can be acquired by individuals, groups and organizations. The gains produced by Profit-Ability skills are measurable. Most existing information management systems have the capacity to be mined for these measurable skills, using tools to provide strategic access to the data.

As yet, few companies understand how to design such tools or how to utilize the advantages these profit-maximizing tools provide. When anticipated gains are not realized within an expected time frame (from either an existing system or a new-system implementation) people in the company may go looking for a scapegoat. Management "blindness" or employee "laziness" can be favorite scapegoats but neither is the real cause.

Ambiguity, uncertainty and distorted perception are the most common causes of poor system performance and the subsequent unrealized company gains. Removal of these obstacles requires accurate, precise measurement, shared vision, and strategies that overcome the natural human resistance to change. Not surprisingly, these same elements, tools and strategies are required for all types of communication.

For this reason companies must develop strategies and skills that directly address communication problems at every level, because these problems severely limit an organization's ability to produce profit. The ultimate antidote for these communication problems is a system of accurate measurement that employees administer themselves.

The ability to quickly measure performance is a skill that takes time to develop. Yet the time required to establish a valid performance measurement system is often seen as too complex and too costly by both employees and management.

When individuals attempt to develop these Profit-Ability skills on their own, without a formal method, the results can be disheartening. But when undertaken as a shared effort by an entire company or group within a company the start-up times can be considerably reduced and the process becomes much more rewarding.

The tolerances imposed upon us by today's competitive ideals are quite narrow when compared to standards of the past. Current profit margins and the competitive demands for same-day service do not tolerate vagueness. Not only is it vital to develop strategies and methods that bring each individual up to speed quickly, but precise agreements and factual data are essential if deadlines are to be met and promises are to be kept. Proactive intervention through a system of accurate, timely measurements is a crucial strategy for keeping everyone invested in the future of the company.

Developing a system of accurate performance measurement--that both employees and management can invest in and trust--is how freedom is extended, and how high performance is maintained, in today's competitive work environment.

Definitions of Empowerment are a varied as the people who seek it and the people who seek to provide it. From Physics, Power is the ability to do work. In many ways Empowerment in business often occurs in a number of very specific and obvious ways when an employee is inspired to function as a competent adult instead of controlled as an unruly child. The value systems of management must be mutually compatible with employee value systems—where accountability and clear open communication is the daily standard.

Having one standard for everyone in the organization is the key. Maintaining that standard without the threat or use of force is the means.


ERP-MRP Evolution…
ERP & Hoshin Kanri…
ERP Implementations… 
Profit-Ability Improvement... (¬Click here to see definitions)
Profit-Ability Management Principles... (¬Click here to see definitions)

People, Empowerment & Profit-Ability… (¬Click here to access articles)
Hoshin Kanri & Deming's Plan-Do-Check-Act... (PDCA) Cycle…

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