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The Deceleration of the American Company The Need for Speed to Survive and Thrive

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When you hear about companies like Amazon, Google or Facebook, you think agility, speed and acceleration.   Business experts state in today’s marketplace, if you want to “survive and thrive”, speed and agility are critical.   Unfortunately, when you look closer at how things truly work in organizations today, “speed” and “agility” are likely to be the last adjective that comes to mind.

The common theme from top managers at various top companies state “It’s just so hard to get stuff done”.   Are these managers “cry-babies” or are there challenges in getting things done in today’s workplace?     What is causing employees and managers to not be able to get things done and is this causing the business to slow down?

CEB, a best practice insight and technology company, through a wealth of data and studies, shows that there is strong indication that most business activity is slowing down not accelerating. (Fortune, Feb. 1, 2016 “Revving Up Your Companies RPMs” by Tom Monahan)  Through measuring activity and key processes across the corporate sector, decision making – even at the basic level has slowed over the past 5 to 10 years.

The Challenge and Cost

Here are a few examples of the slowing down of business:

  1. Hiring new employees now takes 63 days, up from 42 in 2010. This 2015 study was done over 400 corporate recruiters.    What if you are small business and don’t have corporate recruiters?   The cost of these delays for companies can run $400 per day to fill an entry level position.   What about wrong hires?   What does that cost in time and delays?
  2. Average time for an average project increased by more than month from 2010 to 2015. This study was done by 2000 project managers with over 60 companies.   Every month of delay in a moderate to complex project translates to about $43,000 in costs.
  3. Implementation of new processes such as system integration, mergers or changes due to regulation or compliance has shown to statistically take longer than before.
  4. Sales process in the business to business realm revealed striking evidence of organizational delays. The time it takes one company to sell to another has increased 22% in the past five years, as gaining consensus from one or two people who are make purchases has grown to five or more.   For smaller companies it involves finding the time to review the purchases to make the decision.

So, why are companies, given the need for speed, the cost of delay, and frustration of leaders, feeling the pain of being “slow”?  For large companies it can be the bureaucracy built into the organization.   For smaller companies it has been the increased demands of risk management and data collection along with increased regulation which is often poorly coordinated with individuals with little or no experience.

Research shows there has been a nine-fold increase in the number of risk management functions over the past 10 years placed on businesses.   With the new “transformation” of businesses to handle the workload and the amount of collaboration needed to help in the management of risk, liability and productivity, the time it takes to get something done is stretched out to costly levels.

 

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The Fix

Business owners, and top management do not need to spend significant dollars, time or additional purchases on technology which in turn add more headaches to try to solve the current situation.   Through a partnership of outside reputable professionals, who have their best interest at heart, can provide a system of services and support along with having a more streamline approach to challenges being faced with today.

These professionals can help with hiring the right individuals, to workflow process improvements in payroll and employee administration.   Working with Professional Employer Organizations allows companies to reduce liability and administration and focus on their core business, bringing agility, flexibility, speed, control and in most cases significant cost savings back to a business.

 

 

 

 

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Charlotte, NC 28273

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