Tuesday, May 02, 2006

We Don't Do IT . . . Not Anymore . . .

We Don't Do IT . . . Not Anymore . . .

In the early years of our company, we specialized in information technology. We were actually quite good at it. And proud of our work.

But one day, back in 1978 I think, we had a rude wakening. We read a study which showed that installing IT systems produced only negligible ROI's and marginal improvements (about 3 or 4%) in client profits. While those findings were for the industry as a whole, we did not want to be guilty of the same thing. Low ROI's are embarrassing.

So we researched.

We found that there was a small minority of companies who experienced something very different, a 30% to 40% increase in profits. Something had enabled them to leverage the capabilities of their IT systems to huge effect. And that something was NOT in the IT systems. It was something that had happened separately within the Operating Dynamic of the companies themselves.

So we added the capability to trigger those changes. (We had to create it from scratch.) And then we realized that the changes could achieve huge ROI's and remarkable profit improvements all on their own. ROI's of ten and twenty to one are to be expected. Sometimes they are truly remarkable.

So that is what we specialize in now.

Last year McKinsey and London School of Economics (LSE) issued a report on their multi-year study of 100 companies, chosen at random: What we discovered more than twenty years ago, they now validate.

The bottom-line rewards of changing key elements of the operating dynamic are (academically) buried within the report. However, we have excerpted them for you here: Companies Increase Financial Returns.

How we do this work is very different from traditional approaches. And consequently difficult to communicate clearly in writing; it really has to be seen. So if you would like to know how this might benefit your company , please contact us at info@managementconsultants.com or call 847-599-9960. We will be happy to speak with you. No strings; we know this is not for everyone.

Of course we have tried to describe our process in writing: Articles on it can be accessed on our web at Publications.

5 Comments:

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