“The core of OOM is a relentless attack on internal frictional costs.” - Jonathan Oppenheimer
Picture your business a a trek over challenging terrain. Every inefficient practice, every wasteful procedure in your business, is a rock weighing down your rucksack, slowing your progress. The purpose of OOM is to help you identify these burdensome ‘rocks’ - or frictional costs - and cast them aside.
Below is a list of examples showing how significant these ‘rocks’ can be. Removing them is often the difference between a business that succeeds and one that fails.
In 2018, lost productive work time in South Africa totalled more than 128 days.
Unproductive employees in South Africa cost the country R70 billion in 2018 - almost 2% of South Africa’s GDP
Unplanned downtime in 2021 cost Fortune Global 500 companies an estimated 11% of their yearly turnover - almost $1.5 trillion
In the late 2000s, the direct frictional cost of data overload for the US economy was estimated at a staggering $650 - $900 billion per year.
In order to cast aside the frictional costs, using OOM, you can start by asking yourself these questions:
How can we pinpoint non-revenue generating activities within our operations?
How can we remove these inefficiencies without disrupting essential operations?
What methodologies can we employ to ensure streamlined procedures and minimise waste while aiming for financial sustainability?
Негізгі бет OOM Principle 1 - Lightening Your Load By Shedding Unnecessary Rocks - Jonathan Oppenheimer
Пікірлер