Rhema Vaithianathan
Associate Professor of Economics
“
Today’s Chief Executives perceive
themselves to be in a position where
they need to ‘do more with less’, lifting
their performance within the bounds
of constrained resources. In this kind
of environment, organisations can
benefit from targeting some of the
drivers of productivity, including some
of the ‘management 101’ basics, so
that they can indeed get more for less.
Productivity is the amount of output
that you get from the resources that
you have. Organisations can improve
their productivity by targeting (a) better
technologies, (b) better processes,
(
c) staff motivation, and (d) staff
training and development. Research has
shown that management consulting
interventions that target all four areas
have an impact on productivity, and
therefore a return on investment.
The winning New Zealand organisations
will be those that take the plunge
and invest in productivity-enhancing
interventions.”
Christine Woods
Senior Lecturer in Entrepreneurship
“
Not-For-Profits continue to face many
challenges, not least of which is how to
be financially sustainable. Whilst Chief
Executives in this sector view innovation
as ‘out of the question in this climate’
I would suggest that this might be
exactly the right time to innovate –
particularly when it comes to their
business models. The move towards
social enterprise is gaining increasing
momentum in the sector both overseas
and in New Zealand. Recent research from
the New Zealand Charities Commission
suggests that over one-third of the
income received by New Zealand
charities comes from trade and service
activities. Given that this income is
not from traditional sources such as
government grants and contracts, the
shift gives encouragement to others to
move toward a social-enterprise model
and potentially become less vulnerable
to government-led change, and more
able to focus on their social mission.”
Ross Johnston
Partner, IT Law
“
When you are trying to control costs, the
benefits of reviewing your procurement
processes, standard form contracts and
supplier screening can be enormous.
In our experience, doing this thoroughly
can lead to substantial cost reductions
and business efficiencies. In today’s
economic environment, dialogues with
suppliers about better prices and value
have become commonplace.”
John Meads
Partner, Property Law
“
The dramatic increase in insurance
premiums subsequent to the Christchurch
earthquakes mean a significant increase
in your premises’ costs, whether you
own your organisation’s premises or
lease them (although tenants who
negotiated gross rent leases prior to
the earthquakes will have an advantage,
at least through to the date of the next
rent review). Does your organisation
need all of its current premises and are
there opportunities for renegotiating
your current arrangements? It is currently
a ‘tenant’s market’, particularly in the
city areas.”
Dan Hughes
Partner, Litigation Law
“
There is an increased tendency when
costs escalate for disputes to arise with
other parties. Litigation (or the threat
of litigation) can be used strategically
to great effect. While it can be costly
and time consuming, if managed well it
can prove to be a valuable and effective
way of ensuring that an organisation’s
interests are advanced (in terms of
getting a better financial outcome
than other options).”
key findings //
5:
cost escal ation cont. . .
32
t h e n ew no rma l
| 2 01 2