Symptom: Operations cannot get sufficient resources for infrastructure.
An Operations group should initiate projects to build their infrastructure in anticipation of capacity requirements. Some infrastructure investments can be justified on technical grounds. But in general, measures of return on investment should be de-emphasized for infrastructure investments. Instead, plans should read like venture-capital proposals that anticipate the revenue (or benefit) streams from future business.
If the organization is having trouble justifying investments in infrastructure, its access to debt financing may be lacking.
Root cause:Internal economy, budgeting (debt financing) copyright 2024 N. Dean Meyer and Associates Inc. All rights reserved.
