Wednesday, October 18, 2006

Leadership and the training budget

In the old manufacturing economy you basically designed it, made it, sold it and eventually got paid.

So for example, 85% of the cost of a leg of lamb in those days consisted of the raw material itself and labour to put the product on the slab for the customer to buy.

Nowadays, in the knowledge economy, 85% of the cost of a Marks and Spencer precooked, frozen Mousaka is in the research and development, the packaging and in training people.

No wonder supervisors struggle if after twenty five years on the payroll they still haven’t had any effective training on being a supervisor. It can be an indicator about the health of the organisation as a going concern. Sometimes directors say “well, we haven’t got the training budget for that sort of thing” and then it’s time to look at the business model itself.

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