FALLACIES OF OUR BUSINESS MANAGEMENT

EFFICIENCY YIELDS PROFIT

The essence of efficiency improvement is the ability to do more work with the same people and/or time

WHY DOESNT IT BOOST PROFIT?

• Other activity expands to occupy the released time
• Salaries don't go down, even if workload reduces
• Improvements for small teams or occasional activities yield little
• Earned revenue only goes up if you sell more

Insert content-PM data entry improved - time used to plan more carefully

Insert content - 10% improvement to team of 7 means zero layoffs

Insert content - PMs create estimates twice per week requiring 4 hours of work. Even 25% reduction in effort is only one hour per person

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