Friday, August 26, 2011

Are You Running a Lean Operation? - 60 Minute Strategic Plan

You may or may not be familiar with the term lean production. It?s an enormously successful manufacturing practice first used in the automobile industry that minimizes the use of materials, time, and effort while generating the maximum possible amount of value to the customer (?value? meaning whether the customer will buy something or not).

As we repeatedly say in both our book and in our training, customers are a company?s sole reason for being and its only source of revenue. As Peter Drucker said, ?Customers pay only for what is of use to them and gives them value.? That?s why step 5 in our strategic planning template focuses on the value of your plan?s vision to your customers. If they don?t value your vision, they are certainly not going to bankroll it.

While identifying customer benefits in your strategic plan is vital to its success, it?s just as important to do so in your day-to-day operations. So much of the time we get caught up doing stuff (tasks, processes, procedures) without thinking about the value. It?s always a useful exercise to ask yourself and others in your company, ?What value does X provide to our customers?? If you can?t come up with an answer or if the answer is ?That?s the way we?ve always done it,? then you need to hit the STOP button and think it through. Consider eliminating whatever it is or reworking it so there is a meaningful customer benefit.

This entry was posted in Business Management by Anne Marie Smith.

Source: http://www.60minutestrategicplan.com/blog/are-you-running-a-lean-operation-2/

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