[lbo-talk] The Productivity Gain Explained At Last

Dwayne Monroe idoru345 at yahoo.com
Wed Dec 31 10:44:31 PST 2003


Much has been written and said recently about the surge in US productivity.

For example...

http://tinyurl.com/2e65l

Most people seem to agree that this is made possible by companies working fewer workers harder although there are some addled types who gush about computers, efficiency and so on.

I'm witnessing a perfect example of the *fewer workers, more work* technique every work day.

...

One of my clients (I work as an IT consultant) has, among other concerns, a large financials division. This means that their computer network is exquisitely complex and difficult to manage due to systems heterogeneity.

About a month or so ago, both of the systems administrators, fed up with relentless demands, crazy hours and zero appreciation, quit. This caused a minor panic attack amongst management but they soon regained their composure (industry needs its captains after all) and assumed that these men weren't needed after all.

Not when the three-person desktop support team was available to pick up the slack.

Now, these desktop support fellows provide help to hundreds of users, some of whom are quite ornery and stupid (yes, some people are just dumb - usually the arrogant ones). It's not an easy job and fills an entire work day and beyond with frantic activity.

Adding the complexity and heavy responsibility of managing hundreds of servers, switches, routers, hubs, SANs, NAS units and various and sundry other network components, along with securing terabytes of data to their workload (particularly when they lack the background) probably would not be a good idea right? I mean, something's not going to be done right.

Well apparently that's the wrong way to think (note to self: learn to love the market) because, following the departure of the admins, this is precisely what management did.

Here's the thing: by not replacing the two lost admin personnel they save something on the order of a quarter of a million dollars. By using the desktop team as desktop support/infrastructure admins they get cheap labor to perform high-level work without giving anyone a single raise or bonus (hey, it's rough out there amigo, you might not be able to get a new job, you're lucky to be here, we provide free soda yes?).

So, on paper, productivity and profitability has increased by a sizable fraction for this division simply by giving those who remain double, triple, quadruple, quin... ah, you get the idea, duty.

Of course, eventually some serious mess is going to go down that these intrepid but inexperienced guys won't be able to handle. Only we techno-serfs will note the cause-and-effect link.

Management will, as usual, hold a meeting to decide where blame should be assigned.

Imagine this repeated, in somewhat different ways, across different industries and I think you're seeing your *productivity gain* in all its fell glory.

DRM



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