ArLyne's Diamonds

A running commentary of ideas

Thursday, September 22, 2011

Waste and Inefficiency Reign Supreme

I recently had the most unusual experience at a client's site. Hired to help them decide how to re-organize, re-assign key employees, and simplify systems, they decided that they liked all their inefficiencies. The overlap among systems was incredible. The over-control of their CEO meant that his key leaders were only given a piece of the information they needed and thus couldn't really make suggestions for any significant improvements. He built his empire by needing more and more employees to do simple tasks - having multiple processes in place requiring more people and time.

He controlled his board absolutely. His money all came from government programs.

Boy, this reminds me of the company my then husband worked for when we were first living in the bay area. This company got its government funding by cost + 10%. That meant that Ray was chastised for completing a job too early - and was told to stall so that the costs would increase.

Empire building in government, corporations and non-profits often leads to incredible waste and inefficiency.

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