During bad economic times, the knee-jerk reaction of most organisations is to stay lean. This usually involves cutting financial costs, trimming headcount and renegotiating wages; unfortunately, all short-lived means of trimming the fat. What organisations should do if they want to keep lean is to look within. Many a time, inefficiencies along internal processes chalk up resources that could have gone towards increasing productivity. Organisations that refuse to examine these issues create not only excessive costs, but they also breed a culture where there is no pressure to improve – much like a dangling rubber band, according to John S. Hamalian, a regional director at Dell.
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Lean thinking: A case for 'rubber band' organisations. (2010). Knowledge@SMU.
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