Comment Re:Not only do I know what you need... (Score 1) 401
Yes, and the logical result of promising more than you can effectively deliver over the long term is that your experienced people depart for your competitors, taking their knowledge and experience with them.
Also, I've seen organizations enter negotiations with their customers because they were unable to manage this, and either demand a cost increase to offer "incentive pay" to their employees to induce them to stay, or a cost increase with impact to schedule to train the remaining employees to the knowledge and experience level of their departed employees.
In the end, it always comes down to the organization's ability to track where their dollars are being spent, and for what. If an organization is able to do that, they can determine if its improvement initiatives are really having the desired impact, or if they've cut too deep or too fast. When it's not able to do that all conclusions are based on projected cost savings, which are useless because they can be made to confirm or affirm any opinion management may have.
And if an organization is able to determine if its improvement initiatives are having the desired impact, offering bonuses for actual savings is an excellent incentive.