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Eagle’s Eye #1

pillarsHello, this is Bryan Eagle, Managing Partner of Eagle Consultancy International (EagleCI). I would like to welcome you to a new discussion thread, “The Eagle’s Eye”, where I will dig a little deeper into the essence of my consulting approach. I will share some insights and anecdotes from my experience and welcome your comments and discussion. I will endeavor to read your comments timely and post to the blog as appropriate.

The theme of The Eagle’s Eye is Sustainable Wealth Creation. My assertion is the purpose of manufacturing organizations in a market economy is to make a profit. There are exceptions, of course, in non-market economies where manufacturing can be set up as a way to provide employment and income to large numbers of people and/or to provide goods and services needed to society without a profit motive. Whereas some elements of the EagleCI approach are relevant to such situations, this is not the focus of this thread.

Some may argue that manufacturing companies should have goals other than wealth creation, and I agree. Those who espouse the “triple bottom line” view argue that manufacturers must be equally concerned with the sustainability of their operations and their impact on the community as they are to shareholder returns they generate, a notion to which I also subscribe. However, my thesis is that without profitability, a manufacturing company will have no resources to invest in community support, environmental protection, employee well being and responsible citizenry to society.

Thus, regardless of how altruistic the orientation of the enterprise, wealth creation is the essential foundation to the long-term success of any manufacturing enterprise in a market economy. The profits of the enterprise can be then used for any number of endeavors, socially beneficial or not, but without profit the organization will cease to exist and will be of no use whatsoever.

My intention in this blog is to therefore lay out the essence of enterprise profitability. I do not plan to go deep into economic theories or more esoteric analysis, but rather look at the factory as a wealth creating machine in a very practical sense. Given that long term success requires the creation of wealth, how can a manufacturing enterprise increase its profitability?

Our Mission at EagleCI is to “equip Russian and CIS manufacturing enterprises to achieve excellence in their principles, practices and performance through cultural transformation.” In subsequent posts, I will step readers through the:
• Principles that lay the foundation of sustainable wealth creation
• Practices that enhance the wealth creating capability of the enterprise
• Performance that can be achieved when the right principles and practices are in place, in contrast to that achieved when they are absent.

I look forward to starting this journey with you!
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