Peep Kuld, an entrepreneur, co-founder of Cleveron and a member of the board of the e-commerce union, said that even extensive layoffs would not mean that a large part of the work would not be done.
Peep Kuld explained in an opinion piece published on the national broadcasting news portal in the middle of the week that the state could freely cut a fifth of the staff without serious consequences.
Although in an interview with “Äripää opinion leader” he specifies that this particular ratio is conditional, there is a clear logic behind the number. Namely, the Pareto or 80/20 principle applies in every organization, according to which 80 percent of the work is done by 20 percent of the employees.
“I am convinced that if officials are reduced by 20 percent, they will be reduced at the expense of those who are the 80 percent who do 20 percent of the work. All in all, nothing will get worse,” says Kuld.
In his opinion, redundancies help to set priorities, because the existing work should not be divided among the remaining ones, but in narrow conditions one should clearly think about what really needs to be done. According to Kulla, the meaninglessness of the average working hour in the public sector is illustrated by an example from the recent meeting between the e-commerce union and the state.
“There were two of us, the representatives of entrepreneurs, and nine people from the ministry sat against us. This meeting lasted two hours and it was obvious that most of them were bored there.”
There were two of us, representatives of entrepreneurs, and nine people from the ministry sat against us. Most of them were bored there.
Peep Gold
Entrepreneur, co-founder of Cleveron and board member of the E-Commerce Association
In the interview, he talks about what Parkinson’s law is, where and how to cut, what sociology has to say about the nature of the public sector in general, and why the country’s top managers must be rewarded for difficult decisions.
Interviewed by Indrek Lepik. “Äripää opinion leader” is broadcast today at 5 p.m.
Peep Gold: Nothing happens, laid-off officials do a fraction of the work
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Source: www.aripaev.ee
