Benjamin & Parker:Micro/Macro Corporate Effectiveness Measurement

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Benjamin & Parker Corporation (management@b-parker.com) conducted a study in Latin America (Colombia, Valle del Cauca) and the Dutch Caribbean on the implementation of Corporate Efficiency Guidelines. The disclosures revealed that the Efficiency in the corporate perceptions is Accessibility, Reliability and Availability of Financial information (ARA principle) on which stakeholder’s decision are made or has to rely on.

Fact is that the corporate financial requirement cannot depend only on the ARA principle as a new turn in technology has created new threats while impact and containment hereof is not thoroughly and sufficiently addressed.

Corporate Effectiveness is measured by the achievement of a set goal, which is barely defined within the Efficiency objectives. The misrepresentation that Efficiency is Cost savings, which mathematically cannot be determined,  and that  Effectiveness, which objectives are not clear,  is monitored by Efficiency baseline guidelines is an unsustainable science that has been embedded in the corporate world for decades but today’s business community demands  much more thorough studies. Efficiency is a tool to promote administrative accuracy; however there is no formula to determine how to measure cost savings achievement levels within the administrative cycle.

Effectiveness measurement emphasizes in today’s competitive world on how cash improvement actions are implemented to secure profits and or how to contain losses evolution. In addition B-Parker, identifies the urgent need by businessmen to secure the money channels based upon expressions like:” We are trying to get the money through the front door while its flying out the backdoor”. This statement confirms that waste of resources is not handled correctly and these losses are deliberately allocated  into the selling price, conditioning inflation, creating the new scientific term “negligence inflation”.

It’s fair to say that untreated waste of resource by the companies is being allocated to the customers, resulting in the decrease and limitation of the purchase power by the community consciously, who  subsequently blames Governments for the increase of the cost of living.

High waste of resources is known in the following corporate branches:
Energy suppliers
Food whole and retail sale
Medical field

The aftermath when the recovery of the waste is not achieved through sales, profits capsize, management takes the ultimate action to secure their financial expectations by firing personnel. The general corporate culture dictates that personnel is the first account to be addressed, without considering the impact of corporate image self-destruction by compromising customer quality management and not to mention the increase of unemployment statistics. The decrease of employment opportunities, the increase of unemployment, brain drain, brain waste, taxation ambushes and no financial incentives for new investors is the formula for economic instability in any country, which based upon our study, initiates in the corporate environment. Fact is that the customer is between rising of cost of living, unemployment, poor employment possibilities which may have been triggered by the same corporations and businesses, due to negligence to detect cost and or waste evolution of their products.

The chain for survival determines that unemployment enhances crime. Corporate effectiveness determines a great part of the inflation exceling conditions, and the derived impact if remain untreated