![]() ![]() ![]() And that risk can be distributed unevenly, because leaders are often unaware of where the workload is truly far beyond the capacity of the team. Moreover, our experience with supporting leaders at large national agencies has revealed that they rarely believe strategic priorities receive the time and resource investments required to deliver on key goals. ![]() 1 Adi Kumar and Megan McConnell, “Governments have full budgets-and not enough workers,” The Hill, May 27, 2022. To compete with the private sector for top talent and to retain workers-a trend that has only intensified during the COVID-19 pandemic. To compound the problem, the public sector has long struggled Our conversations with government agency managers have conveyed, in a broad sense, that workforce planning is broken, despite the significant time devoted to it. This is called a “plus-up” mentality: every year’s request simply includes the current team plus some personnel inflation. Managers often tell us that they have little faith that their workforce requests will be approved, so they inflate requirements in the hope of getting what they need. Many agencies have time-consuming, complex processes that can make it difficult for leaders to identify where teams need to grow and where workloads may in fact be shrinking or have room to shrink. But reallocating positions (also known as billets) to where they are most needed is a constant struggle. Across many government agencies throughout the world, leaders are telling us that workloads are growing and their employees are increasingly overtaxed-especially the core teams they have entrusted with the most mission-critical priorities. Any business that provides personal or professional services, for example, is unlikely to carry significant stocks.Worker burnout is rife, and the public sector is no exception. The last point to remember is that stock turnover is an irrelevant ratio for many businesses in the service sector. Negotiate sale or return arrangements with suppliers – so the stock is only paid for when a customer buys it.Rationalise the product range made or sold to reduce stock-holding requirements.Introduce lean production techniques to reduce stock holdings.Sell-off or dispose of slow-moving or obsolete stocks.Care needs to be taken in working out what the "average stock held" is – since that directly affects the stock turnover calculationĪ business can take a range of actions to improve its stock turnover: Stock levels can vary during the year, often caused by seasonal demand.They may have to stock a wide range of product types, brands, sizes and so on. Some businesses have to hold large quantities and value of stock to meet customer needs.Fast-food outlets turnover their stocks over several times each week, let alone 8-10 times per year! A distributor of industrial products might aim to turn stocks over 10-20 times per year Some products and industries necessarily have very high levels of stock turnover.Interpreting the inventory turnover ratio needs to be done with some care. Inventory (Stock) Turnover Formula and ExampleĪs a general guide, the quicker a business turns over its inventories, the better.īut, it is more important to do that profitably rather than sell inventory at a low gross profit margin or worse at a loss. ![]()
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