Monday, July 18, 2011

Do You Work To Keep Your Team Busy or Work To Make Money?

A thought provoking idea that every Entrepreneur should think about:

With enough raw materials, you can keep one worker busy from now until retirement.

But should you do it?

Not if you want to make money!

Making an employee work and profiting from that work are two different things. Putting it precisely - Activating a resource and utilizing a resource are not synonyms.

'Utilizing' a resource means making use of the resource in a way that moves the system towards the Goal.
'Activating' a resource is like pressing the ON switch of a machine; it runs whether or not there is a benefit to be derived from the work it's doing. So, really, achieving a non-bottleneck to its maximum is an act of maximum stupidity.

An implication of these rules is that we must not seek to optimize every resource in the system.

To Your Success & Exponential Growth
RP

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