Saturday, January 31, 2015

I am Me And My Manager Style... Learning Curve S

A Peruvian entrepreneur specializing in selling products and technical services, reaches a certain maturity after 10 years of doing the same work, especially in the "boom" phase of the business cycle.
When the local economy moves into recession cycle, our employer fits in business, the company reduced staff, reduce operating costs and increase sales looks less organizational structure.
However these solutions only allow the company to survive, the employer only preserves your capital.
The learning and experience curve or curved "S" is set on itself but as a diminishing returns, then when approaching the lowest point of the economic recession, the "S" curve changes slope and it is therefore necessary move to a different curve "S1".
But this change must occur level with 4 possible scenarios:
- Technological changes.
- Changes in the legal structure (the rules)
- Changes in monetary income
- Changes in tastes and preferences
Remember that learning curves typically have two major sources:
- Individual learning
- Collective or organizational learning
The company added individual knowledge and business strategy led by the manager or director, as the company has only one collective learning curve.
Whenever the accumulated experience reaches the highest efficiency (optimizing business operations and improving profitability margins), here the director or manager must seek to achieve another level of learning curve (eg jump from S1 to S2), preventing the four factors described above, affect the performance of the company.
Companies need to be prepared to innovate their business strategies in times of recession, can not maintain the same form of work, pass a curve S1 to S2 where curve, leveraging experience sought other business application this knowledge. Many companies that were successful in a particular field of knowledge and business, changed its commercial orientation and even the type of product to advance and grow in their markets with better competitive level.


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