What’s The ‘Breaking Point’ Of Your Business?
When Boeing and other aeroplane manufacturers are developing new aircraft they literally test them to destruction. This ensures that the planes will still operate effectively even in the most extreme situations. It is a concept that I think should be applied to business operations. When many managers review operational performance their focus is on efficiency rather than effectiveness. As a result their operations are designed for average, not peak levels of demand, and they struggle to cope with busier periods. Last year, for example, I helped a US hotel chain improve its valet parking service. Their approach worked fine in normal conditions but fell apart as demand peaked. Between 12 and 2pm, cars started backing up down the driveway, guests…
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