Both private and publicly financed organizations are faced with providing higher quality services while lowering the cost of delivering those services. All of this in an environment of:
- A worsening global economy.
- Major US companies in serious financial crisis.
- Dwindling capital resources.
- Reduced operating budgets.
- Reduced funding of public sector programs at the federal, state & local levels.
- Increasing demand for services & support.
- Rapidly changing demographics.
- Public scrutiny regarding tax increases & bond elections.
- Changing political & economic landscape.
- Over the last 10 years, many of the Fortune 100 companies have either dissolved, been replaced, sold, or merged with other firms.
- Many of those same firms were considered “effective & efficient”; e.g. certifications in ISO 9000, 14000, 22000, 27000, Baldridge, TQM, & Six Sigma.
- Even public sector organizations are experiencing the same fate as their private sector counterparts.
Top 3 reasons:
- Lack of fiscal accountability.
- Lack of focus and resources on “core” business.
- No sense of urgency.