Minimum efficient scale changes over time. Some of these changes mirror trends in technology and consumer tastes. Others reflect savvy strategic decision-making. Escalating fixed costs can be a powerful means

One of the lines that had received only the multiplier incentive proved an exception. This line became increasingly dysfunctional. Workers criticized each other for a lack of skill, their supervisor for poor communication, and management for an insufficient flow of quality material. A full 70 percent of these workers quit. (Another line with the

By helping your suppliers lower their cost, by making it easier for them to sell to your organization,

Managing in environments that have strong network effects is challenging because the feedback loops accelerate change: seemingly in the blink of an eye, cash disappears; platforms like TikTok, an entertainment app, and Pinduoduo, an e-commerce business, gain hundreds of millions of users almost overnight. In other instances, network effects impede

Are expectations of longer-term benefits reasonable?

Identifying attractive opportunities to reduce WTS requires you to be familiar with the many ways in which work touches the lives of your employees. A more pleasant commute outside rush hour might be as valuable as improved work processes.

A profound question to ask is the following: If your company were to disappear tomorrow, who would miss it? Perhaps your customers, who found supreme delight in your products and services? Perhaps your staff, who cherished working in your company? Perhaps the suppliers, who enjoyed a special relationship with your firm? Someone needs to miss you.

How could Taobao possibly catch up? It did so by finding other ways to boost willingness-to-pay (WTP)! With the help of services such as Alipay and Wang Wang, and thanks to a superior website design and two-sided ratings, Taobao increased and eventually matched eBay’s ability to delight customers. The

Is it even plausible that WTS is low?