Enterprises obtain a cost advantage from economies of scale due to size, and output or scale of operation, with the costs per unit of output generally decreasing, as fixed costs are spread out over additional units of output. Basically the more pieces you produce, the more the cost per piece is reduced. However, this only applies to production, and does not apply to the changes.
Implementing additional and larger changes to an enterprise at the same time will not decrease the impact and cost of those changes. The more changes we implement, the bigger the impact and the cost, and this relationship grows exponentially. This is mostly due to the complexity of the changes, but there is one factor we shouldn’t forget; human nature.
People tend to feel uncomfortable with change, and the bigger the change, the more uncomfortable they’re likely to feel. On the other hand, people accept very small and gradual changes quicker and with less impact to their daily activities. In retrospect, the more small changes a company implements, the better the company will be prepared for future mid-big scale changes.
How are organizations applying changes today?
It is very common to see big bang projects with big process re-engineering that disrupts operations and is very costly and time consuming for employees to adopt. Why not try something different; Why not try smaller changes? Quicker changes!!!
Quicker changes can:
- Be delivered in a shorter time period
- Receive earlier feedback from the users
- Focus on the best relationship between value and effort of the change
- Be naturally adopted by users and organizations
Winshuttle’s Lean Data Management approach allows companies to get into a Continuous Improvement “way of life” that allows them to implement changes in short iterative cycles, focusing on the best value/effort relationship, while these changes are adopted rapidly by users, without disrupting normal business operations.
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