Posts Tagged ‘value’

Thriving instead of just surviving

July 4, 2013

Thriving companies make effective use of resources to create successful customers. Zombie companies earn just enough to pay the interest on their debts. Low interest rates allow zombie companies to exist without investing in new products, processes and their management systems. As interest rates rise, the zombie companies will disappear unless they act now.

How do companies stop surviving and start thriving in this economy?

Refocus on your mission:

Your company’s mission is the reason your company exists. It is the system’s purpose. Cutting everything by 20% or more may be instinctive but without regard for the mission, it will put the system, your company, into a death spiral.

Instead, be creative. Your core process (from customer needs to cash in the bank) is mission critical. Determine the vital few changes that will yield most of the efficiency improvements.

Study your marketing and selling process. Perhaps you can go viral via social networks to explain clearly how your company creates successful customers. Study your innovation process. Do you fully understand, from the customer’s point of view, each of their objectives? Then design creative solutions with superlative service (see below) to help each customer to fulfill their objectives. Sell the value as seen by each customer but do not cut prices. Use your management system to improve efficiency and reduce costs but do not offer discounts.

Superlative customer service:

Companies often focus their management systems on tangible goods. Indeed, for nearly three decades, accredited registrars have encouraged their system certification clients to ignore their service design processes!

Leaders know that superlative customer service can influence each customer to buy on value instead of price.

Study your product design process. Ensure it designs the whole experience the customer has with your company. Engage your employees in the redesign of their interactions with customers by analyzing the customer’s experiences as they are. Agree upon the service changes so they are as they should be from the customer’s perspective. Make this new process part of your management system by changing the affected processes such as training, selling and maintaining the computer network. Continually improve the customer experience with your management system.

By engaging your employees in the redesign of their interactions with customers, you inspire them so they help your company to thrive again.

$ per millisecond

August 31, 2011

How fast does your organization add value?

All work should help other people. In this context all work is service. We also know that all work is process. Work should add value or enable another process to add value. When our work depends on the successful interaction of several different functions we need a management system to help us so we are all doing the right things the right way at the right time.

Besides paying customers, our communities, our families, our colleagues, ourselves and our employers – the people receiving the results of our work are stakeholders.

Management systems should inform us of the requirements critical to success. Management systems should deliver to us, on-time and defect-free, the inputs to which our work must add the value. Management systems should deliver the necessary resources and controls so we understand and can agree customer requirements. As part of the management system leaders coordinate our work and cause all of us to care passionately for each other’s requirements.

In short, the management system enables us to earn a living and our organizations to exist.

Sometimes our system slows us or stops us from adding value because its core or support processes, the inputs, resource or controls are late, ineffective or defective in some other way.

Two questions remain: “how fast does your management system enable your core processes to add value and what are doing with your management to hasten the rate it adds value?”