Inflation creates innovation!

It is not all doom and gloom around the current high inflation rate. We have to get used to the fact that prices will rise sharply for years to come. But the ghost of inflation can even be a good thing. When a company is faced with rising costs, something must be done to survive. Without interventions, demand will implode.

To stem the tide, many organizations are adopting the cheese slicer method of cutting costs. Stopping the hiring of externals and laying off staff is a common saving. This is often accompanied by loss of quality and knowledge. For the employees left behind, the workload increases significantly. As a result, this method never ultimately leads to the desired result. So are there other options available?

The alternative to the cheese slicer method begins by asking the following question: how can you increase labor productivity within labor-intensive sectors? Don't think about a productivity increase of a few meager percent but dare to make real strides. For example, think of increase of at least 50%, what do you have to change to do that?

Growing labor productivity without increasing workload also has a positive impact on staff shortages. Let go of the status quo and earn an edge over your competitors. Inflation is always a driver for innovation!

Ruud Olijve

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