| EDITORIAL
Americans spend a lot of time and money conducting studies
to verify what we already know. ......................... Hard facts, exact numbers. Regardless of the topic, we love to hear results of studies, reports, and surveys. As a member of the business press, I look at a new study like a birthday gift--a nice "surprise" that's usually not too surprising. But oftentimes a report can help make an important issue seem more urgent. Investing in people, for example, is critical. Employers know they should do it. Smart employers know they must. In a nutshell, that's what a new study from PricewaterhouseCoopers, St. Louis, MO, reports. Over the past five years, a group of US manufacturers has increased productivity 40% while most of their peers recorded gains of less than 20%. This successful group also demonstrated that future success requires more than technology investments. To stay competitive, say the findings, manufacturers must comprehensively train employees and forge new relationships with customers and suppliers. The report was the second annual Census of Manufacturers, conducted by Pricewaterhouse Coopers and IndustryWeek magazine. The study reveals three keys to business success. First, invest in people and knowledge sharing through skills training, empowerment, and cross-functional training. Next, tear down company walls. This means building relationships with suppliers and customers to reduce inventory and meet customer needs faster. Finally, be selective when utilizing technology. Competitive companies invest in innovative technology like electronic data links and production planning software. Along with the Internet, such investments are helping successful companies build an electronic supply chain, leveraging the gains achieved through investments in people. According to the study, follow the above guidelines and reap superior results in productivity, quality, and efficiency. As you allocate your 1999 budget dollars, plan on investing in all assets, especially your employees, suppliers, and customers. Don't wait for things to break before making a commitment. If neglected, machines are forced to sit idle and wait for your attention. People, on the other hand, are not.
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Departments FundaMetls: Workholding
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Just the facts
