Performance Improvement… the Cost of Doing Nothing!

Beneficial Change requires investment, but doing nothing costs far more.

Having been privileged to serve the needs of the European Food and Drinks industry continuously for 56 years, I have obviously seen many changes, some of which I have been directly involved in. It isn’t the pace, nor the extent of change, which has surprised me, but the extent to which so many companies seem reluctant to embrace the beneficial change and instead, do nothing.

Comments such as ‘We have always done it this way’ have almost become a standing joke, but it is surprising how many people make such comments, whilst still resisting change themselves. It has often been said that ‘The only constant is the rate of change’. For many, the rate of change has been stuck in neutral for far too long and it is beginning to show in their annual audited accounts.

Doing the Same Things, but expecting Different Outcomes?

Whilst we design, manufacture, supply and support leading edge true state of the art performance improvement systems, we do not always see the rate of ‘take up’ and performance improvements amongst our clients that we expect to see. As the system is unequalled, let alone surpassed, compared with all other available systems, the lack of engagement on the part of our clients is almost always the cause. There is no shortage of ‘reasons’ or ‘excuses’, but the underlying problem is FEAR, the fear of change. Whilst it might be easy for us and them to see the weaknesses in the status quo, the fear of moving away from what they have always done, and embracing something new, is ever present.

Machiavelli recognised this more than 500 years ago which led to one of his most famous quotes:

“There is nothing more difficult and dangerous, nor more doubtful of success than an attempt to introduce a new order of things. For the innovator has for enemies all those who derived advantages from the old order of things, whilst those who expect to benefit from the new order of things will be but lukewarm defenders. This indifference arises in part from fear of their adversaries who were favoured by the old order, and partly from the incredulity of men who have no faith in anything new that is not the result of well established experience.

Hence it is that, whenever the opponents of the new order of things have the opportunity to attack it, they will do so with all the zeal of partisans, whilst those who defend it, do so feeble, such that it is dangerous to rely upon the latter.”

Taken from Niccolo Machiavelli’s novel, ‘The Prince’ (1513)

Spending Nothing is not the

same as Costing Nothing!

Those companies paralysed by inertia, will endlessly justify/excuse ‘doing nothing’. Some will say that they have to keep their spare funds for a ‘rainy day’. Others may even claim that spending less means more profit to share amongst stakeholders. Much like the Water Companies now issuing large bonuses to directors, together with payment of dividends, whilst they pump raw sewage into the sea and our inland waterways. They have the monopoly, we simply have no choice but to continue to pay ever increasing water bills.

Amongst truly private companies, of course, the story is rather different, as they still have to remain competitive in order to avoid losing market share, but many are having a tough time. The Government is threatening to legislate in order to force supermarkets to reduce prices. If this happens, we know that the supermarkets will put even more pressure upon their beleaguered suppliers, squeezing them still further.

In June 2023, compared with the same period last year, bankruptcies were up by nearly a third.

Performance Improvement: You Can’t Improve What You Don’t Measure

With ever increasing raw material prices, legislated annual minimum wage increases, a shortage of factory floor labour and the supermarkets pushing for further reductions, the food and drink manufacturers must look inwardly to reduce their transformation costs. For some, this will mean a ‘root and branch’ end to end, overhaul, but for many, simply a myriad of incremental improvements to drive out waste and improve efficiencies. Either way, measurement becomes increasingly important. It is virtually impossible to chart improvements if you have little understanding or metrics regarding the starting points. Measurement cannot be done effectively or continuously with pencil and paper, so an accurate analysis of the starting points is essential.

With so many systems available, all of which claim to be ‘end to end’ ‘shop floor to top floor’ ‘leading edge’ and more, may all have something to offer, which do you choose?

Choosing the Right CI System and Partner

Choosing the right system is, of course, important, but so is choosing the right performance improvement partner. The right partner will understand your business, appreciate the risks and challenges that you face, will have an in-depth understanding of the difficulties encountered in the successful implementation of change and be enthusiastic to work with you to ensure the fullest understanding and engagement. The concept of CI is simple, but it isn’t as easy as some would have you believe. Reduction of wastage and improvement of efficiency at every opportunity is now more essential than ever in order to survive, even thrive, in this increasingly competitive marketplace.

We are here to help. See us at the PPMA Show at Birmingham NEC between 26th and 28th September on Stand B46 or give us a call on +44 (0)1225 764461.