Outsourcing: Difference between revisions
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Management consultancy textbooks will glowlingly quote Anthony Burgess: “A sure sign of an amateur is too much detail to compensate for too little life”. | Management consultancy textbooks will glowlingly quote Anthony Burgess: “A sure sign of an amateur is too much detail to compensate for too little life”. | ||
Management consultants aren't generaly much good with literature. This they take as a mandate to ignore the messy intractable details of a business process, and instead look at the big picture. A good rule of thumb is Pareto's 80/20 rule: 20% of the activities will consume 80% of the costs. | Management consultants aren't generaly much good with literature. This they take as a mandate to ignore the messy intractable details of a business process, and instead look at the big picture. A good rule of thumb, they say, is [[Pareto rule|Pareto's]] [[80:20 rule|80/20 rule]]: 20% of the activities will consume 80% of the costs. 80% of the revenue will come from 20% of the clients. And so on. | ||
Step one - undoubtedly right - leads to step 2: if we could only identify what that 80% is, we could relocate it to a cheaper means of production and bingo - easy cost savings. | Step one - undoubtedly right - leads to step 2: if we could only identify what that 80% is, we could relocate it to a cheaper means of production and bingo - easy cost savings. | ||
Revision as of 16:52, 24 August 2017
A great boon for management consultants, but a chocolate starfish for anyone else.
Management consultancy textbooks will glowlingly quote Anthony Burgess: “A sure sign of an amateur is too much detail to compensate for too little life”.
Management consultants aren't generaly much good with literature. This they take as a mandate to ignore the messy intractable details of a business process, and instead look at the big picture. A good rule of thumb, they say, is Pareto's 80/20 rule: 20% of the activities will consume 80% of the costs. 80% of the revenue will come from 20% of the clients. And so on.
Step one - undoubtedly right - leads to step 2: if we could only identify what that 80% is, we could relocate it to a cheaper means of production and bingo - easy cost savings.
What this misses
- it's low value, not no value.