Why Stability is Important

The Mass Layoffs: Does it help?

POOGI is the short form of Process Of On Going Improvement.

POOGI claims that performance should go up as time advances. 

This contains two different curves—the red curve and green curve. In the red curve the rate of improvement grows leading to exponential growth. 
In the green curve, the rate of improvement decays leading to diminishing returns. 

Improvement in operations will lead to competitive edge. 
To take advantage of the competitive edge we would guide companies to strive for the red curve. In doing so, disapprove of the green curve.

But, how do we sustain rapid growth?
When searching for the answer, we realised that the green curve is as essential as the red curve. 

We are dealing with two types of performances: 
– financial growth and 
– stability. 

Companies should ensure that their financial performance will grow by at least a few percent every year. 
This is the red-curve growth. 

To sustain, companies must ensure that the growth will not degrade their stability. 

Over time, it became evident that achieving the red curve requires we meet the green curve and vice versa.

To “make more money now as well as in the future” we must choose the actions that will not only:
– bring growth soon, but also 
– increase the company’s stability for the longer horizon.