Rol Fessenden <76234.3636@compuserve.com> wrote in "Downsizing Literature
LO4198":
[snip]
RF> ... downsizing by and large leads to -- more downsizing. Nothing
more, nothing less. In general, it says, that cost-savings don't
materialize, and productivity gains do not occur. You can read the
excruciating details at your leisure.
[snip]
RF> It is interesting that the major reason given for down-sizing is the
amount of overhead in American companies compared to their international
competition -- 27% of costs in the US, 22% in Germany, and 18% in Japan.
Those differences are astounding.
Whenever I worked for a large corporation, I was part of the overhead.
That is to say, I contributed thoughts and directions rather than
production. Knowing that I come from that arena, you may discount what I
am about to say. [And this is not a flame at anyone, just a rant.]
What the hell is wrong with U.S. companies carrying more overhead than
German or Japanese companies? We know that in every other area of the
cultures of different countries that there are major differences. However,
when we look at business, we ignore those differences, and pay attention
to a two-digit number to compare them. As a mathematician I look upon this
as the epitome of foolishness. Does anyone else see how stupid this is?
American companies also do not have mid-day naps. American companies also
do not force their middle management to go drinking together. American
companies are not controlled by a few families. And on and on and on. Do
these cultural differences appear in the two digit percentage that is used
to justify stupid acts like downsizing? [End of rant.]
-- ########################################## # Hank Heath Vice President # Medco Systems, Inc. Consultants for small business # 3 Eves Dr., Suite 304, Marlton, NJ 08053 # HankHeath@aol.com # ph: 609-596-1028 fax: 609-596-8650 ##########################################