In Richard Koch’s 1998 book, The 80/20 Principle, he makes a rather stark statement reflecting on the events of today. “The tipping point is ‘the point at which an ordinary and stable phenomenon – such as a low-level flu outbreak – can turn into a public-health crisis’, because of the number of people who are infected and can therefore infect others. Since the behavior of epidemics is non-linear and they don’t behave in the way we expect, ‘small changes – like bringing the number of new infections down – can have huge effects… It all depends when and how the changes are made.”
“The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.” — William Arthur Ward.
Maintaining adequate cash flow is a major factor when operating a healthy business in times of growth and prosperity. During tough times it takes on an amplified role. The fundamentals of collecting on receivables, reducing expenses, reducing inventory investment, and the like are still in play, but these and different strategies need to be examined in difficult economic times.
Litania Sports Group | 150 employees | www.litaniasports.com
Litania Sports group is an athletic equipment manufacturer located in Champaign, IL.
Litania was interested in zero based budgeting, which the CEO had proposed to the management team in August 2016. The idea around this was that it would address the company’s desire for aggressive growth in untapped markets. Having done previous work with IMEC, Litania trusted the experts to deliver the training they needed to implement true zero based budgeting which they hoped would result in cost reduction by the end of their fiscal year, September 30, 2017.