NEEDS ANALYSIS FOR COMPANIES

*THE LETTER WHICH FOLLOWS WAS ORIGINALLY SENT TO ME LAST WEEK BY BRUCE NEWMAN, OF THE PRODUCTIVITY INSTITUTE, LLC. (www.prodinst.com). I HAVE REPRODUCED THE LETTER WITH PERMISSION. THERE IS A GROWING NEED FOR EACH COMPANY, OR EACH ORGANIZATION, TO HAVE AN INDEPENDENT, EXTERNAL NEEDS ANALYSIS PERFORMED. THIS TYPE OF ANALYSIS CAN BE PERFORMED DEPARTMENTALLY (REGARDING ONGOING BUSINESS), OR ON A PROJECT-BY-PROJECT BASIS. A PROPERLY PERFORMED ANALYSIS CAN DECREASED FIXED COSTS, INCREASE PRIODUCTIVITY, INCREASE PROFIT MARGINS, AND MAKE IT POSSIBLE FOR ORGANIZATIONS TO WEATHER VIRTUALLY ANY ECONOMIC RECESSION. I BELIEVE THAT THE TIME FOR BUSINESSES TO CONDUCT NEEDS ANALYSES IS NOW.

*IF I COULD SPEND SEVERAL THOUSAND DOLLARS (ONCE) IN ORDER TO SAVE TEN TIMES THAT MUCH PER MONTH (ONGOING), I WOULD BE MAKING A BRILLIANT INVESTMENT. THERE ARE SOME INVESTMENTS WHICH NO ORGANIZATION CAN AFFORD NOT TO MAKE.

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NEEDS ANALYSIS - Trading Fixed Costs For Controllable Costs

Dear Colleagues:

Too many businesses are suffering under the burden of an inflexible fixed cost structure. In our business paradigm at THE PRODUCTIVITY INSTITUTE (http://www.prodinst.com/), we believe that every single business should assess its cost structure in order to determine which fixed costs can be eliminated or replaced with reduced variable costs. It is the obligation of every business manager to generate profits for stakeholders. Without profitability, there can be no future.

It is wise to assess your cost structure, both by department (function) and by project. We have resources which can replace your "corporate legacy" paralysis with flexibility. We have the ability to to see where some smart re-engineering could be applied to your business. At PI, we are not just about finding you the best-rated consultants to complete projects and replace overstuffed departments -- We offer a Corporate Needs Analysis Service to employers and owners. Contact info@prodinst.com to request details.

Now, some questions for you:

1. Have you ever had an outside expert spend a full day analyzing your cost structure?

2. If so, what was the experience like? Positive? Negative? What was the result?

3. If the cost of a professional Needs Analysis was less than 8% (on average) of the amount of profit you would gain through cost savings, would it be a prudent investment for you?

Please feel free to post your responses directly to this forum or to me privately. I truly appreciate your input.

--Bruce Newman

http://www.prodinst.com/

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I hope that you found Bruce's letter as significant as I did. It represents the greatest breakthrough in corporate financial analysis since the notion of "Zero-Based Budgeting." I believe that Bruce pays referral fees to Subscribers and Members who directly refer corporate clients to him.

Faithfully,

Douglas Castle