The feature that distinguishes Gamba Makes the Profit is the division of the whole company (all its levels) into small teams (autonomous clusters) and the introduction of simplified management accounting. The team leaders (owners of the clusters) constantly control the following: income, costs and work-time of their teams; in this manner, they become engaged in the current management of the company. The costs that the teams generate include the forthcoming:
- The space utilized by the team (which encourages employees to limit the area used in the company),
- The services of other departments provided to the team (which encourages to train employees to avoid additional costs)
- In-process stock that is generated by the team (which logically limits its number). The relations among the clusters gain the attributes of transaction that de facto makes them small, autonomous companies existing under conditions in a free market – the teams deal in services and products with other clusters or even external companies.
Gamba Makes the Profit is not in contradiction with Lean Management or Six Sigma. On the contrary, it allows taking advantage of the aforementioned methods in a more effective and easy way as devices that enhance business effectiveness of particular clusters.
The main advantages of Gamba Makes the Profit are as follows:
- The visualization of business management is transferred to the lowest dimension, more precise than the traditional one. All the activities are perceivable in income and cost lines as well as working time,
- The increase in employees’ engagement and motivation, that is the accomplishment of the “managing-by-all-members-of-the-company” model,
- The improvement of internal communication,
- A significant elevation of cost-efficiency in the utilization of the company’s resources.