Systematic planning and re-organization

In the last decade wages and salaries have more than doubled in most industrial countries. The amount of capital behind each person in industry has in many countries increased even more, partly to rationalize and compensate for the higher manpower costs. This high rate of investment made discount rates increase 50 – 100 per cent in most industrialized countries in the same period. On the other hand low-cost countries have steadily been pushing more and better products into the international markets. This increases competition. The strongest competition and challenge, however, may come from new technology, new materials, new products and above all from better management.

This development leads to a profit-squeeze for the static company. It gives smaller margins for slow and wrong decisions, and demands a dynamic forward-looking management that understands how to organize, how to develop and involve individual human resources, and how to draw up and use objectives, goals, plans, and programmes, both for present and future growth and progress.

In this article, which is based on management and consultant experience, the focus is put on the need of developing and using as management tools systematic planning and reorganization.