We can expose the subject in a very basic way; the company is to generate profits and these occur when revenues less all costs and expenses has resulted in a positive figure. Therefore it is necessary to work on these two variables. It is clear that if we live an era economic downturn, achieving increased revenues, is a very complex task, but it is possible with an adequate strategy. The easiest thing that found companies is taking action on the second variable, i.e. reduce costs and expenses. It happens that many companies take as their first and only measure dismiss personnel. It might sound logical. Fewer clients, less activity, then less personal and thus less costs.
Other companies see this situation as an opportunity to improve. Virtus kar has many thoughts on the issue. Undoubtedly they must work on reducing costs, but must be simultaneously identified opportunities for improvement in their business processes, looking for better productivity. When business results are positive and there is an abundance, generates a situation of sufficiency which leads us to believe that what we do, we do it so well that they look at the good results that we have. Surely it is valid for many companies, but I dare to assure that it is not the case for the majority. This situation makes that companies do not worry permanently to seek improvements in the efficiency and effectiveness of their business processes. The day to day, added to the feeling of we are going very well, he makes problems, inefficiencies, waste, bad employees, bad managers and all sorts of evils are hidden, or at least nobody wants them to see. They are there, there still, but no matter, the situation supports them, keeps and feeds, then do so worry? Good times are the breeding ground for waste and inefficiency in many companies. Other companies take advantage of this situation to be improved prepared for these downs of the economy, which are cyclical and it is proven to be submitted now and in the future evidence.