Transcript Slide 1

The Challenges Facing Ireland Inc.
Jim Collins BSc, MBA, MCMI
Ahearne Collins & Associates Ltd.
Enterprise Strategy Group Report
“Ahead of the Curve” Report published 2004
Key Challenges identified
•
•
•
•
•
•
•
Exponential change in scale of Globalisation
Increased Irish cost base
Corporate tax rate competitive emulation
Limited export growth of indigenous companies
Imminent changes in EU state aid limits
Services becoming major GDP growth driver
Knowledge as driver of economic development
© 2005 Ahearne Collins & Associates Ltd
The Challenges
Globalisation
• The China Price!
• 38 million educated citizens working in manufacturing facilities in
Cities and a further 70 million in suburbs & rural locations
• Average city wage @ $1/hour, rural @ $0.45/hour
Irish Cost Base
• 2003: € appreciated 20% vs $ & 8% vs £.
• Irish price levels deteriorated 14% & are now 12% above the
average EU cost base.
• 1999: highest net job creation & highest job losses.
• Last 4 years: 33,000 jobs lost, over 50% in the high tech sector.
© 2005 Ahearne Collins & Associates Ltd
ESG Report / ctd
Making it Happen
© 2005 Ahearne Collins & Associates Ltd
Opportunities
High value-added manufacturing …..
Will remain a fundamental component of Ireland’s
enterprise environment
Export Growth
The $100 billion club! 1
• 2004: 16 countries exporting >$100 billion of Manufactured goods
• Next 2 Years: Joined by Russia, Malaysia & Ireland!
1 Stephen Gould VP US National Assoc. of Manufacturers, Future Manufacturing Forum, Sept 26 th 2005
© 2005 Ahearne Collins & Associates Ltd
Realising the Potential
World-class Skills, Education & Training
• Upskilling general workforce
• Lifelong skills development
• Distinction in HE graduate quality
Cost Competitiveness
• Partnership
• Rewarding workplace productivity
• Focus on Adding Value not Cost
Management Capability
• Business networks
© 2005 Ahearne Collins & Associates Ltd
The Lean Solution
Engage & Empower Employees
Pursuit of Perfection & Elimination of Waste
Providing Added Value to Customers
Efficiency and Effectiveness
Partnership
© 2005 Ahearne Collins & Associates Ltd
The Toyota Way
Defining Work
• Advance in the process &
enhance the added value
• Motion ≠ Work
Respecting Humanity
• Employees give valuable time
& energy
• Company provides opportunity
to do meaningful work
• People’s sense of value
requires worthwhile work
Ohno…
A man-hour is something
that we can always count.
Manpower is
beyond measurement.
Capabilities can be extended
infinitely when everyone
begins to think !
© 2005 Ahearne Collins & Associates Ltd