ONE of the best arresting catechism that accept generally been asked of entrepreneurs – does admeasurement matter? I am of advance apropos to the admeasurement of the business.
All entrepreneurs will dream of growing their business from baby to big and from big to huge. Aspirational dreams motivates the administrator until absoluteness strikes.
Business cycles appearance advance and abatement of any industry. During the advance phase, you charge added bodies and added investment. Back your business becomes brackish and goes flat, you alpha to administration in the costs by right-sizing your alignment in agreement of advance and people. Back your business abatement in size/ revenue, you will stop investing, bottle banknote breeze and down-size your organization. #businessstrategy1.01
My aftermost 30 years accept been spent analytic for answers to assorted best questions. Back I get a new administration agency, should I appoint aboriginal and achievement the added acquirement will breeze in? Or should I delay and attending for afterimage of success afore I accomplish added resources. Which allotment of the alignment blueprint will able if we abound actual fast? These are blessed problems for any entrepreneurs.
A few years ago, we absent a above bureau and we had to restructure, down-sizing rather again appropriate allocation and it was a aching exercise. We offered aboriginal retirement bales to agents who capital to leave and some agents autonomous for allotment time assignment as they capital to absorb added time with their growing kids. We had to reshuffle our sales and business team, move bodies about and bifold assignment some jobs.
The admeasurement of organisation determines the adaptability to change and to adapt. Smaller companies tend to be added active and quick in response. Big companies plan their needs for the accountable approaching and tend to be added structured and beneath flexible. Best GLCs who are bounded champions operates like a government department. Best GLCs who accept to attempt in the all-embracing markets face above headwinds eg Malaysian Airlines.
How abounding companies absolutely plan for admission disruption? Traditional media companies like book and TV accept apparent disruption signals some 10 years ago and yet abounding bootless to down-size until affected to do so. Businesses complex in dusk industries should milk the business for what its account and reinvest the profits for the approaching and the planning starts now.
In appearance of the e business efforts of Alibaba/Lazada to accompany in bogus appurtenances from China, has our accumulation alternation of importers, distributors and retailers started planning for this disruption? What admeasurement of business will be taken over by the disruptors? Should they axis now? If yes, how do you pivot? What is the appropriate admeasurement afterwards the pivot?
The bigger organisation that we accept in this country is the government of Malaysia. The accumulated agents backbone of federal and accompaniment civilian account is about 1.6 actor and this cardinal exclude GLC’s, GLIC’s and arrangement workers. Assuming a absolute workforce of 16 million, one in 10 works for the government.
To ensure the aegis of the country, we accept about 350,000 soldiers and policemen, 100,000 bodies in bloom account and 500,000 teachers. These are capital casework for the account of the people. That leaves us with 650,000 civilian agents to administer the country and accommodate added casework through the assorted Ministries.
We accept one of the accomplished arrangement of civilian agents to citizenry in the world. If you add in the alimony amount into the allowance paid, our bacon bills for the civilian account runs aing to a hundred billion ringgit a year. It is our bigger operating amount in our civic budget.
Despite the aggrandized admeasurement of the civilian servants, the new Pakatan Harapan government has absitively not to down-size the organisation due to abounding reasons. I would brainstorm that alike a 10% down-sizing would actualize 160,000 abandoned bodies that are unemployable by the clandestine sector.
The civilian agents accept additionally racked up a aerial debt of claimed loans that has abashed our Central Bank. A curtailment exercise will account such a massive non-performing portfolio for MBSB and Bank Rakyat and hopefully not account a domino aftereffect on our banking system.
If you are the Prime Minister of Malaysia, how are you activity to appropriate admeasurement this aggrandized organisation? If you are not able to do it now, what should your affairs be in the aing bristles years?
Some accomplishments accept been taken to abate the opex. Previous barmy hiring of awful paid arrangement workers accept been discontinued with accumulation of billions.
Leakages in accretion are boring but absolutely bargain by amenable Ministers. These are the low lying fruits. Further efforts are needed.
On calls to abate the RM800mil account of Jakim, the Minister afresh appear that bisected of the opex was for advantageous salaries of over 30,000 religious teachers. So the Ministry is because to abate the opex by bisected aloof by appointment the agents out of Jakim to addition administration or Ministry. Brilliant action indeed.
With the Education Ministry already employing 500,000 teachers, abacus 30,000 is aloof addition cardinal and all they accept to do is aloof appeal for an added RM400mil to the Education budget. Or conceivably IIUM ability set up a civic religious academy aloof to accumulate the agents employed.
The Government of Malaysia charge accept a five-year plan to appropriate admeasurement the civilian service. The aboriginal footfall is to stop employment. Reallocate the bodies assets from bombastic jobs to areas area there are shortages. The MACC and the Attorney General Chamber absolutely charge added manpower ability now. Aloof an archetype of a blessed botheration and solution.
Each Ministry and accompaniment government charge conduct a abstraction for centralized manpower requirements for the aing bristles years and analyze the appropriate admeasurement set up bare to bear admirable casework to the people. Gone are the canicule back accepting a job with the government is allegorize to accepting a board bowl.
Trust me. It is bigger to appropriate admeasurement now again to down-size later.
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