It was fascinating to read a recent article by UK Cycling Performance Director Dave Brailsford on what he felt were the reasons behind the astonishing success our cycling team achieved at the London 2012 games, inspiring a nation on the way.
Dave Brailsford put a lot of the success down to marginal gains, simply ensuring that his team were 1% – 2% better in all areas they operated, from which the cumulative effect would be a world beating cycling team. This was a similar philosophy to that adopted by Sir Clive Woodward on turning a good English rugby team into 2003 World Champions. Do you know one of his marginal changes was simply getting players to turn up to meetings 5 minutes early so they were ready to start on time and get the most from their time together.
So what’s your point I imagine you are thinking? Quite simply I believe that if you apply the same principles of marginal gains and focus on detail to cost management then you can ensure that your costs are as low as they can be and that your company is then in the best position to out-perform your competitors. I doubt it will bring you Olympic gold but if it is enough to give you the winning edge in the current tough economic climate then it must be worth doing.
A great example of using marginal gains would be when reviewing your energy contracts. It’s not easy to ensure you are achieving best value for your supplies but by being that 1% – 2% better than other companies and checking you know your energy contract end dates, termination window dates, renewal offer date, profile, maximum demand, consumption patterns and future predicted usage would put you in a fantastic position to achieve real value at your next renewal. The money you save could be used immediately to benefit your business.
Alternatively, if the idea of achieving real cost reductions is appealing to you but you feel you may not have the necessary expertise in-house to achieve this why not contact Auditel for a chat to see if you could benefit from an Auditel health check. Over 3,500 companies have worked with us since we started 18 years ago and we now have practical experience in over 80 different cost categories, so I am sure we will find a way to help you.