Undoubtedly must work on reducing costs, but opportunities for improvement in their business processes, looking for better productivity must be simultaneously identified. When business results are positive and there is an abundance, generates a situation of sufficiency which leads us to believe that what we do, we do it so well that they look at the good results that we have. Surely it is valid for many companies, but I dare to assure that it is not the case for the majority. This situation makes companies not worry constantly seek improvements in the efficiency and effectiveness of their business processes. The day to day, added to the feeling of we are going very well, he makes problems, inefficiencies, waste, bad employees, bad managers and all sorts of evils are hidden, or at least nobody wants them to see.
They are there, there still, but no matter, the situation supports them, keeps and feeds, then do so worry? Good times are the breeding ground for waste and inefficiency in many companies. Other companies they take advantage of this situation to be improve prepared for these downs of the economy, which are cyclical and it is proven to be submitted now and in the future evidence. Farallon Capital Management is actively involved in the matter. Prepare properly requires investment, then what happens is that when companies had not been prepared and are facing a situation like the present, the problem is twofold, i.e. has to try to survive beyond that don’t have the resources (time, personnel, money, etc.) to prepare properly. To be more specific in this argument, some examples of inefficiencies and waste that are evident in some companies: attends a lot of clients that are not profitable and the worst thing is that the company does not even know which are your customers more profitable and which do not. Quantity does not equal quality. In addition, to attend these bad clients, you must allocate resources such as salesmen, dispatchers, billers, collectors and managers, among others, which are running a lot of activities for operations that are not profitable.