Doing less with more

If you’ve looked at your CUC bill lately, you probably did a double take to make sure it was correct. The fuel surcharge fee has added 32 percent more to our usual fuel charge. It is interesting to note that when we looked up the word “surcharge” on our computer dictionary it gives this definition: “To charge somebody too much for something; to make somebody repay from personal funds any losses stemming from negligent or intentional mismanagement of a fiduciary responsibility.”

The “surcharge” had been a topic of debate for several months, so now that reality is slapping us in the pocketbook, this question should be asked: “What are we getting for this extra $50 to $500 “fee” that individuals and business owners are forced to pay each month? Do we have better and more reliable service, less power outages, less equipment damage from power surges? If anything, there seems to be an inversely proportional relationship between the price of electricity and the service and reliability received.

In a competitive business, this would quickly drive customers to find another source for a similar product or service because they would be getting less value for their money. In the good old public sector, it is just business as usual with no apologies or concerns for the impact it has on the public.

Leading experts in productivity and quality state that the real reason for productivity problems stem from poor management. Productivity is essentially a ratio to measure how well any organization (or industry, individual, or country) converts input resources into goods and services. This is usually expressed in ratios of inputs (resources) to the outputs of goods or services.

Positive results can be measured through increased volume, improved services, better delivery, quality, or benefit to customers, reduced costs, or more profit or sales. Negative results mean poor service, or a decrease in volume, quality, sales and profits. This is not a good situation and something should be done to remedy the condition.

There are basically six ways to improve the productivity ratio of an organization. The short-term methods include: increase the overall effectiveness of each worker, improve the planning of work and use of labor, and improve existing methods and procedures.

Long-term approaches would be to simplify the product and reduce variety, improve equipment and machinery, and utilize research and development to improve basic processes.

Increasing productivity means that the organization can do more with less. Trying to maintain the status quo without taking care of people and upgrading or replacing machinery means that the organization will end up doing less with more. Throwing more people or money at a problem does not necessarily improve the situation. In fact, it may even make it worse by institutionalizing inefficiency, ineptness, and ineffectiveness. If continued, the system will eventually collapse on it own morass.

The concept of productivity may not seem important or necessary in the public sector where the public has little options. However, the lack of productivity will cause the eventual demise of any organization. It can lead to product replacement or obsolescence, and if the problem worsens, the public will demand accountability.

Lack of productivity hurts not only the organization, but also the people it serves. It means that the maximum value that can be derived from the resources are not being realized. It also means that the output or results are less than what could be achieved. Doing less with more costs more money, time, and creates a lack of credibility with customers and future investors.

Returning to the “surcharge” definition; are we being asked to pay too much for electricity that has losses stemming from negligence or intentional mismanagement of a fiduciary responsibility? The art of management lies in the ability to select from the many activities the few that provide leverage well beyond the others, and to concentrate on them.

Hopefully, there is a solution to the CUC dilemma so that we will be able to have consistent power that meets the needs of everyone. If not, we can expect to continue the trend of paying higher prices for poorer service.

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Rik is a business instructor at NMC and Janel is the owner of Positively Outrageous Results. They can be contacted at: biz_results@yahoo.com