Management Waste

'Let honesty and industry be thy constant companions, and spend one penny less than thy clear gains; then shall thy pocket begin to thrive; creditors will not insult, nor want oppress, nor hungerness bite, nor nakedness freeze thee'

Benjamin Franklin

Management Waste

  • There are approximately 5 million* people in management roles in the UK (Wilton et al, 2007) 
  • 40% of managers and senior managers have qualifications at or above Level 4 (HNC). Unfortunately, these qualifications are non-management related.
  • Over the longer term managers with management-related qualifications will only rise to about 20% or just 1 in 5*.
  • In addition, 50% of costs within companies do not add value either now or into the future (see charts) (Womack et al, 2007).

 

Manufacturing & Logistics Waste Diagram

Manufacturing or Logistics Sectors

  1. 4% value-adding activity
  2. 1% future value adding activity
  3. 35% support activity
  4. 60% waste

 

 

Service & Information Waste Diagram

Information and Service Sectors

  1. 1% value-adding activity
  2. 1% future value adding activity
  3. 49% support activity
  4. 49% waste

 

 

  • These figures are not suggesting that the cost of waste is at quite such a high level, but the data does suggest that, on average, 50% of costs within companies do not add value either now or into the future.
  • Improved business performance requires an investment in the skills and capabilities of the management. These skills include; planning, organising, controlling, leading and motivating activities (Bolton, 1987). The PENNI on-line pre-training self-efficacy assessment offers a framework to improve waste management. 

 

 

Source: Wilton, P. et al; 'The Value of Management Qualifications - The perspective of UK employers and managers'; Management Standards Centre; (2007). 
Source: Womack, J. and Jones, D.; 'Lean Thinking: Banish Waste and create Wealth in your corporation'; 1st Ed.; Simon and Schuster; (1996, 2007). 
Source: Bolton, W.; 'Supervisory Management - Managers and Supervisors: The Management Task'; Pg. 24; Heinemann; (1987).
* Wilson R.A. and Homenidou K.; 'UK Commission for Employment and Skills Technical Report: Working Futures 2010-2020'; Table 16: Comparison of Working Futures IV with Working Futures III by Occupation; 16.2 Comparison with Previous Forecasts; pp. 78 - 79; UK Commission for Employment and Skills; (2012).