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It's a funny thing. Even economists understand "supply & demand". Yet no-one uses the concept when it does not support their own arguments. Even business managers claim to support "quality processes". Yet they ignore page one of the quality manual.
WA's resources sector must find an extra 33,000 skilled workers by the end of next year or face time and budget blowouts that could harm its international reputation as a competitive mining market. (WA needs extra 33,000 workers, by Gareth Parker, The West Australian, 14 Apr 2011)
Page 1 of the quality manual says, Do not commit to work unless you have the resources to do the work. WA's resources sector does not have the resources -- it is short by 33,000 workers -- so why is it committing to the work? Are they all idiots? Or is it pure greed...
Years ago, I worked for a company which tendered for a document management project. We didn't have the staff to do the work -- there were just four people in our office -- but that made no difference. If we had won the contract we would have hired the staff. From somewhere.
Other companies put forward similar bids. They also did not have the staff. Whoever won the contract would have hired the staff. Really?
Whoever won that contract would have tried to hire the staff. We all knew that suitably skilled staff did not exist in WA. We had no contacts for suitable staff from other states. In fact, we had no idea at all as to where our staff would come from... If we had won the contract we would have failed to deliver.
We had no resources to do the work. We bid anyway -- because we were greedy. Greedy for work, greedy for future profit. If the client were stupid enough to contract with us, we would have strung them along while we made excuses. And employed staff who knew nothing about the work to be done.
To look at it another way: There was a demand for specialist services. We could not supply. But we bid anyway because we were greedy. And we followed no professional standards of honesty.
Now look at WA's resources industry
They have contracted to do work, to sell minerals and energy to overseas customers. Can these WA resources companies satisfy their contracts? Evidently not, they are short by 33,000 workers!
WA resources companies are entering into contracts where they clearly cannot satisfy their end of the bargain. Why are they doing this? Idiocy? Or greed.
Now it gets worse.
Resources companies have signed contracts -- knowing that they cannot deliver. What do they do? They demand that someone else has to deliver 33,000 workers!
Greed and the chance of even more profit has lead companies into unsustainable contracts. In order to protect their future profits, those companies now expect all of WA to support them. With more people, more suburbs, more infrastructure. All free to the companies. So that the companies can make higher profits.
If you can't support the contracts -- don't sign them.
Don't expect to take all of the profits and pass all of the problems onto someone else.
Of course, all of the above is nonsense.
Of course all of WA is going to pay for the profits of a few resources companies. That's the way it has worked in the past. Why change something that works. Or, at least, that works for those few who make the profits.
Remember the Golden Rule
He who has the gold, makes the rule.Agamedes Consulting. Support for your thought: email nick leth at gmail dot com |
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