CONSULTING
Every system has some critical constraint which limits the output of the whole system
In other words, identify the right change & implement it correctly; it will give quantum improvements
Improvement pursuits keeps organizations busy simultaneously on several projects. Cost cutting, productivity improvement, product improvisation or market expansion, individually each bears some results to a certain extent till it gets overdone & starts impacting adversely. "Are we addressing the root cause?" they struggle to answer
Organizations like any organic ecosystem have their own way & pace to move around the constraint & go with the flow to survive & grow. More often than not we see Companies struggling to manage a way around such performance obstructions.
"Constraint" is often interpreted in isolation as a department problem or issue in another part of the action area. What is missed is the larger canvas of interdependencies in which it plays out due to day-to-day conflicts arising in business.
Be it a margin vs discount, cost vs value, efficiency vs productivity or expansion vs consolidation, there will be a perfect rationale to justify either side of the decision.
If left unaddressed, actions taken due to such conflicts which may vary to both extremes from time to time, becomes the norm.
These independent actions across the various interdependent parts of the organization, justifies the cause and effect within the respective silos in the whole operation cycle & therefore normalizes the resultant undesirable situation as status quo.
Such operation cycle will then hinge only on producing in big batch, only buying in large quantity, only shipping in full trucks, only pushing the products down the supply chain to the customer, etc. Organizations then gradually start becoming more rigid in the value-vs-cost trade off and tilts towards the cost side.
The ramification of being heavy on the cost side of the value -vs- cost tradeoff is the loss of competitive edge on product/technology & organizations survival becomes tightly linked to the price of the product or service.
This combination of unresolved conflicts, loss of competitive edge & the resultant overdependency on the price of the product/service, takes the organization further away from creating value for its consumers, stake holders & the situation spirals into a vicious cycle.
This vicious cycle is what holds back companies to achieve their full potential. When many such players with such vicious cycle are vying for the consumers attention with price as the base criteria, it results into an unharmonious situation ; The Red Ocean
We at Blue Ocean work extensively on such conflicts & help companies overcome them to get out of the vicious cycle. With a multipronged approach of Consulting in Business processes & technology intervention, we help clients to have a reset of their key parameters to a healthy level & put them on a virtuous cycle of growth and stability.
Please get in touch to know more about case studies, types of intervention & what we can do for you.
