Run a Better, Faster, Leaner Business

Lesson 5 of 29

Define Your Value Proposition

 

Run a Better, Faster, Leaner Business

Lesson 5 of 29

Define Your Value Proposition

 

Lesson Info

Define Your Value Proposition

So here's domestic at a high level there's your define to find your voice of customer to find your voice of market to find your voice of process to find your current state your assumptions we're going to measurement so how long does it take now all right what's our productivity measure things like that we go into analysis so in the measurement phase we're looking for something that we might not desire what we call undesirable effects or you tease and so what do we have that's undesirable analysis phase is why do we have it what's the cause and effect relationship if we could get to the root causes then and improve at the root cause level now we've really ah that we've really hit a home run and then the control phases that sustainability phase I talked about yesterday like the fifth assets where was it becomes cultural habit but notice that dominica's circular not linear a lot of people have used it over the years in a linear way uh where it's like I define I go through a toll gate I me...

asure I go through a toll gate ike you analyse and I get to this end state that I've done you never done the idea with the mayor because that it sze irritant it's ongoing and for for obvious reasons these days so we go back to define and we say let's define the voice of customers to find the voice of market let's pull out a tool called the c t q tree, a critical to quality tree. This is where we take vagueness and we bring it down to specific detail. I always like to say to people, vagueness, you can't fix vague vega's the enemy so let's be very crystal clear on what it is we're trying to resolve here we can use a value stream map toe look at the overall landscape, the overall system and a performance improvement grid, um, to get a better field than for ah, where we wait 00:01:59.88 --> 00:02:01. with it with a customer. So I'm gonna take it to some 00:02:01.7 --> 00:02:04. of these basic tools now and, ah, 00:02:06.02 --> 00:02:07. we could discuss it. So we start with who was the 00:02:07.85 --> 00:02:09. customer? What is value in the market? What do we 00:02:09.86 --> 00:02:13. really get paid for? And I like to present this as 00:02:13.17 --> 00:02:17. more or less a kn equation. So value is sort of a 00:02:17.04 --> 00:02:20. moving target it's, a function of several key things, 00:02:20.78 --> 00:02:23. but not everybody values the same thing. So from running 00:02:23.22 --> 00:02:25. a tile business, all right? 00:02:27.82 --> 00:02:31. What level equality air people looking for so in that 00:02:31.89 --> 00:02:34. quality bucket what are they looking for 00:02:35.52 --> 00:02:39. if I'm going to mcdonald's what's in the quality bucket 00:02:39.35 --> 00:02:43. and some people think really quality how does that 00:02:43.12 --> 00:02:45. work but let me give you a couple of ideas what's 00:02:45.28 --> 00:02:50. in the quality bucket predictability consistency safety 00:02:51.69 --> 00:02:55. reliability in other words I know when I'm getting 00:02:55.19 --> 00:02:56. before I even order it 00:02:57.57 --> 00:03:01. it's that predictable it's that reliable so quality 00:03:01.42 --> 00:03:05. is what what am I getting in my tile what am I getting 00:03:05.21 --> 00:03:07. in my foot my photographs what am I getting in my 00:03:07.88 --> 00:03:11. uh my artwork in my exercise routine whatever that 00:03:11.92 --> 00:03:15. the qualities services the easy to do business with 00:03:16.12 --> 00:03:16. factor 00:03:17.92 --> 00:03:19. how easy is it for me too 00:03:20.67 --> 00:03:22. interact with you as a business 00:03:23.52 --> 00:03:25. how easy is it to mean it for me to navigate your 00:03:25.67 --> 00:03:28. website how easy it is for me to get in touch with 00:03:28.4 --> 00:03:30. you okay 00:03:32.02 --> 00:03:36. how accurate is the order when I place it to get it 00:03:36.39 --> 00:03:40. right how friendly are you okay so the service factor 00:03:40.47 --> 00:03:44. now some people put more weight on one bucket then 00:03:44.55 --> 00:03:48. another so we have to recognize that that value is 00:03:48.26 --> 00:03:51. a a combination of all of these things we need to 00:03:51.64 --> 00:03:55. be very clear on that you know prices price and how 00:03:55.33 --> 00:03:58. do we compare time earned its own space you know, 00:03:58.42 --> 00:04:00. years ago they're really only these three quality 00:04:00.52 --> 00:04:03. service good price time earned its own bucket the 00:04:03.55 --> 00:04:06. nineteen nineties, because time with lean time based 00:04:06.84 --> 00:04:09. management came out and said, you know what? You might 00:04:09.42 --> 00:04:12. go to mcdonald's for a consistent 00:04:13.19 --> 00:04:17. heather, a. An accurate service, a clean restroom, 00:04:17.25 --> 00:04:20. a friendly environment, a competitive price. But guess 00:04:20.88 --> 00:04:24. what, you got fifteen minutes for lunch. 00:04:25.49 --> 00:04:26. You okay? 00:04:28.46 --> 00:04:29. Where you go for that kind of 00:04:31.09 --> 00:04:35. time based management, fast food, so to speak. So 00:04:35.1 --> 00:04:38. a lot of people, if they can't get what they want 00:04:38.89 --> 00:04:41. within a certain period of time, they move on to tow 00:04:41.49 --> 00:04:43. somewhere else. This was a huge win for me in the 00:04:43.75 --> 00:04:47. game, wasn't it? Of course I wanted quality and I 00:04:47.39 --> 00:04:50. want a good, friendly service. The price was fixed, 00:04:51.89 --> 00:04:55. but time was critical to me, and I was like to suggest 00:04:55.56 --> 00:04:57. to people you think about your customers like they're 00:04:57.65 --> 00:05:00. wearing a stopwatch where they've got a time clock 00:05:00.97 --> 00:05:05. going. They want to know because their time is valuable. 00:05:05.44 --> 00:05:06. How long do I have to wait? 00:05:07.94 --> 00:05:10. And in a date today where we're itself service so 00:05:10.13 --> 00:05:12. much we could book our own hotels online, book our 00:05:12.48 --> 00:05:15. own airlines online, we can, uh we can gain, not weaken 00:05:15.96 --> 00:05:18. google things so quickly bang things so quickly we 00:05:18.61 --> 00:05:21. could find information so quickly and self service 00:05:21.9 --> 00:05:24. and now I gotta call up and I gotta wait 00:05:25.59 --> 00:05:25. yeah, 00:05:26.83 --> 00:05:32. all right. And this innovation bucket is really relatively 00:05:32.64 --> 00:05:35. new because the innovation bucket is saying, you know 00:05:35.06 --> 00:05:39. what? Um I value things I don't even know I value 00:05:39.62 --> 00:05:40. yet. 00:05:43.09 --> 00:05:47. Kurt yeah john I uh you know, I I live in his pocket 00:05:47.33 --> 00:05:49. all the time and what I constantly see and we call 00:05:49.91 --> 00:05:52. it the pendulum effect is where there's a focus on 00:05:52.88 --> 00:05:55. one particular area at the expense of another movie 00:05:55.58 --> 00:05:58. so there's an optimization has to occur your equality 00:05:58.6 --> 00:06:02. but time have to be balanced so useful you have appropriate quality not more than you need take more time than you need and get that right balance when we talked at all about how to optimize these yes and we're going to talk about breaking through the when I sometimes call the two thirds paradigm where you could get two out of three or the four out of five but you can't get all five the reality is really clever companies have challenged that paradigm and now they say you know what who get all five and we're going to demonstrate that in the next segment with with the lean signal game we're going to get in that and some kaizen sessions where we're looking at can we improve the quality and improve the service and improve the price and improve the time and innovate and the answer is yes we can but only when we shift from the or paradigm to the and paradigm because we grow up with either or it's quality or speed it's service or price and a lot of companies have built that into their own their thinking and their cultures is we've got to give one up for the other a lot of companies these days are challenging that paradigm in proving it obsolete, which is interesting to see so we'll you know we'll test that curtain I appreciate the question definitely so the value proposition whether you're a solo about a preneurs, an entrepreneur, a startup, you're you're trying to get something started your we're working out of a cubicle and a company somewhere and you you've got this idea and you've got a hobby on the side you want to build a business out of it, whatever it is you want to d'oh you've got a big sure that you've got a crystal clear value proposition it's one the very first things you do in business is you have to say, what am I going to get paid for that's essentially what value proposition is this is your solution to a market need or desire or request but make make note it might not actually be a request it might be a market that's not even aware this is possible there's where the innovation comes in so I'm going to be a solution to a problem that people might not even be realized they have yet all right, I'm going to come up with something that the people are going to go wow and get it and want to pay for it then you have to ask yourselves how is this idea different than other ideas like it how is it going to be valued recognized how are people going to know about it? How did people know I've got this different type a tile business this different type of photography business a different type of our studio why should they by my work oh and not someone else's how am I different? Do you have question related teo service based businesses with the value proposition formula applied to the service based businesses well absolutely okay absolutely saw you know what? What ah service of my often attack service legal service I could give you an example beach mama says my husband is an arborist with one two three man ground crew I handle all the admin and customer service but their question is will you be addressing how to use this system uh in a service based business so yeah, this system applies to any business that has customers which is every business it applies to any business that has processes which is every business service or product there processes processes air just sequences of activities that are needed teo deliver value to the to the client so you've got all recognizing like in the game that we played I don't know that they're any businesses out there tuned in that are in the red dot placement business or the yellow dot placement business or the diamond drying business. Those air simply metaphors for service provisions or physical provisions were making something we're drawing something we're taking photographs were building tiles things like that but I would most certainly talk aboutthe service factor and what difference just differentiates people there you know you'd taken organization like a toyota which we brought up earlier you know the primary difference between a lexus and a toyota because text toyota owns alexis is service a lot of the components on the car identical but they differentiate the lexus with service proposition and it's a whole different level of service all right you can see airlines do it you can see hotels do it okay what can we do to differentiate ourselves from everyone else that's promising the same service all right here's a quick story you know when alexis first came out years ago that was actually a recall so what is your image your mental model so to speak when you think recall and a lot of people had vehicle recalls over the years while you get a postcard in the mail right or something like that and the postcard says hey there's something wrong with your car and yes it we'll fix it no charge just bring it in and we'll fix it like no charge but my time is a charge you know my thean conveniences a charge really it's not good news when you get a recall typically alexis and you know what I'll call you up we'll make an appointment to come pick up the car. We'll leave you a brand new lexus is a loner okay. And your car was fixed. Washed, waxed and filled with gas, and returned the next day with a nice gift on the front seat. Now what do you say next time I leave the tank empty you know I mean wow right because they took service toe a whole different level and so we're just not going to play ball so to speak the same way everyone else plays it we're going to challenge those assumptions and challenge those paradigms and come up with a different value proposition all right that's why people pay extra for a product in many cases that's really not any better than other products but it's the service offering and the easy to do business with factor and I will cover that a little bit more in just a few a few minutes. Okay? This is an interesting little of differentiation because a lot of organizations get very confused about well, who the customer is and we've got little see customers and big c customers, so to speak the little sees are all the people between us and the end user really if you think about that if if I make something I provide a service to somebody who uses it to provide something to someone else who uses it to provide something to someone else. I mean, an illustration of this would be if I provide a a product to a target or to a walmart, what do they do with it? They sell it toe someone else the big c would be the person that comes in there and sells it now if they're clever they're going to say we're not going to allow a lot of waste and variation in our process why because we're trying to look out for the big c the end users were trying to save them money that's part of their value proposition you come to a target or wal mart we're going to save you money ra meyer we're going to save you money so how you going to save me money because we're going to drive a lot of the waste just out of the value stream so that when you come here you're going to get your best deal you can so those organizations that get the big c amazons brilliant at it specially when they offer you in e books with any book they can they can charge you less you pay less front any book typically than a physical book the publisher makes more amazon makes more of the author makes more so how does that work everybody makes more money in the customer pays less it doesn't add up in the old paradigm adds up in the new one except for the printers and the physical distributors because that's where all the money came from this is beam it to you there's no physical charges for that so the lena aerospace space institute years ago and cooperation with m I t the massachusetts institute of technology said you know when we talk about lane we're talking about the end user the ultimate end user that's so that the whole philosophy of lean and running a lean, world class business is it starts with the end in mind and work backwards, as opposed to the other way around. So what does the and use air really goingto value? And how do we make sure that that way on lee do the very work that we have to do to get that to them? In a timely, productive, price, competitive, service friendly way. Here's, where all the confusion comes in. In fact, uh, god bless total quality management of the nineteen eighties. Total quality management taught us that the customers the next one in line. Well, if we buy into the customers the next one in line, we're at risk. And the reason where at risk is because what if the custom, the next one in line is an internal department? Okay, it's, the diamond department, or it's, the red circle department, it's, the next department in line, and they're saying, stop, hold up or do this, or do this differently, and they're not pan for it. What's going on, then, is all of this waste is khun creep into the system, and who ends up paying for it? The end the end user at the end of the day so we get into a pass a cost passing on for me lf you will and it's put industries at huge risk so by starting with a big c and working up and saying yeah we've got little sees little customers to deal with in the intermediate customers and whatnot but we've got to make sure that we're focused on the big c that's where all the synergy in the valuer this might be one of the most important slides in the entire deck it's also very controversial because this upsets people particularly people in management it differentiates value added activity from non value added activity value added activities any activity that transforms or shapes for the first time if it's for the second, third, fourth fifth time that's called rework and that's not value added for the first time any material information to meet the customer value so this is essentially what we're really getting paid for this is the value add and the nod value at is all this stuff that uh we may or may not have to do that surrounds it okay it might be necessary it might not be it might be valuable which doesn't mean it's value added might be valuable but might not be valuable so I like to use this illustration. You're sitting on your couch ten years ago and you want to watch a movie on television what's the process look like I want to watch a movie. It's. Not on television, so I have to get off the couch. I have to go find the car keys, have to get on my bicycle or whatever. I got to go down blockbuster now, it's, a seven, eleven or something, but I got to go down. Video store. Browse the shelves. Things like that wait in line, pay for it. Come home, load the machine, a sale. Oh, prayer, hope it works, and ah, what's the movie. We can map that process right. We can count the steps. One of those steps are value added. Popcorn. So you start thinking about what's, uh, what's the value at what did I really want when I was sitting on the couch? I want to watch the movie when, ideally, right now, right, I wanted to watch the movie. I wanted to watch it. Now I didn't. I didn't wantto necessarily have to go driving around and standing in line and all this activity, but ten years ago, that was the standard process, wasn't it? If we could map that out, learn from it. But by learning to call non value added non value added and not be offended by it we've now got innovations which says you know what you never have to leave the couch you can download it while you sit there you can on demand it you can do all kinds of things like that with it so we innovate by recognizing that actually very little of what we do in a process is value add is an extraordinary amount of non valuable and that's what we're on the hunt for we saw it all through the game okay all through the game this takes us to the infamous seven wastes made famous by ghanim taichi ono chief engineer a toyota years ago the infamous seven ways are these corrections defects let's go back to the simulation we play did we have corrections and defects? Of course we did a lot did we have shin which is doing more than we need to when we need to and we had examples of overproduction susan was overproducing because he was getting paid to overproduce and yelled at if she didn't that was just part of the system so let's just what we use it eventually all right movement movement is the product itself moving around and did we have movement? We had it all over the place back and forth and we can measure that. I was working with a company in a number of years ago making vitamin tablets they made it took over fourteen miles to make a vitamin tablet and they never knew it because they never asked the question so when we found out it took fourteen miles and one hundred eighty two days to make a vitamin tablet and the value add was like two days not even and we could do it in a much smaller space that transformed this company their stock prices more than quinn toppled during the worst recession in our in our life in our lifetimes in the last eight ten years okay bye taken out the waste motion is things like human motion flipping pages adjusting the ruler that's all motion we had over forty steps in that game that we're all motion waiting product waiting customer waiting if its service how long they waiting okay assets waiting all forms of waste inventory and a lot of people say inventory I thought that was an asset on the balance sheet you know you're calling it a waste if you look at this the symbol at toyota for example of inventory it's a tombstone they refer to it is dead material it's it's it's it's dead until we sell it so it doesn't mean zero it just means think about the amazons that I've talked about the targets the wal marts the flow inventory turns that's healthy and finally unnecessary processing is just all this complexity we build into the system check and double check signatures how many signal knitters it takes all this uh all this excess processing so we could look at examples of this in design and engineering you know, drying ares rework things like that we had to dry nurse in the er and the diamond department for example uh things piling up never getting launched we we've seen many examples of that and the businesses we come from movement lot of handoffs let it touch points a lot of motion things like that waiting for information for meetings to start for approvals waiting for customers how often do we end up waiting for the customer? And I know I've worked with a lot of service organizations where the idea is we hand off a load of things to the customers say you need to fill out all these forms to do business with us or you need toe give us back this information and days go by sometimes weeks go by that comes back is incomplete it's it's it's late so in this day and age the common strategy is let's just go in and sit down with the customer and get it done in two hours why wait two weeks? We'll go through it together or we'll and we'll we'll send in data miners experts if you give us access to your system we'll just get the data for you you'll never know if you know you'll never even know we're here. So these air these air radical, different ways of approaching the same kind of work that breakthrough and then of course all kinds of processing excess meetings it's it's incredible how much time we can waste sit in meetings and things like that there's administration example so the point of this is to say this isn't just about making widgets or making tile or making automotive parts or aerospace parts or tool and dire fixtures this is this is about what you do in the office okay if you got incorrect data entry it's a formal waste you have a lot of copies going on a lot of reports a lot of storage it's all a formal waste I eliminated forty percent of my job in the first two months actually years ago when I was promoted into to a director role I discovered forty percent of my job was just pure waste and eliminated it within a couple of months and it was all about excess reports exits meetings I mean it was like I just sat in meetings all day and read reports it's ridiculous I wanted to gamble you know that zumba gamba like december too all right so you could see it in administration you can see it with people look at all the waste with people all right? The amount of movement that's unnecessary work ergonomic issues challenges their amount of people waiting around looking looking for things waiting for approval searching for stuff that kind of thing um and a big one here underlie underutilized people, not tapping into them their their full potential all right and then independent actions coming up with your own way to draw better diamonds coming up with your own way to reorganize your department things like that those air independent actions and a lot of times they actually make your your area better but they make the overall all system actually even worse potentially then we have other forms of waste it's not just those seven that taichi ono came up with but waste space we waste material we waste talent and human potential you know psychologists say that the average person only reaches about ten percent of their potential in life imagine that the average person only reaches about ten percent of their true potential is the other ninety percent in terms of lean we'd call that waste that's that's unfortunate we all have way more capacity then we think and and variation will spend more time on variation in the next session okay that's where some of the six sigma comes in so voice of customer here some very practical steps any size business khun do this let's start with identifying our customers the big c and a little c who we're doing business with who's our audience what are they paying us for what they want what they not want let's collect reactive data let's survey them let's interview them let's let's get a reaction all right and then use a proactive approach to fill it and the problem with surveys and things like, you know, net promoter scores and things like that. That's it's, a great tool to help keep score and get feedback, but it's, it's, reactive, and until we take it and make it proactive by proactively polka yoking the diamond department, because tales don't work, it's, it's, just a form, a waste it's. Just collecting data that we don't do anything with that's, a formal waste. So we analyze aki lester needs. We translate those needs into the critical two qualities, because vega's the enemy, and then we set some specs for the c t q. So it looks more less like this customer says, I want good service. This gets back to the question about service, so I want good service. What is good service, it's vague. What does it mean, especially when we have a lot of different customers and they all have a different interpretation of good service, right? What? What does that mean? Well, let's, be a little more clear, good services about being responsive, reliable, empathetic and giving me a sense of assurance, okay, that you know what you're doing. It still seems big no response responsiveness what what does that mean well at federal express years ago teo to remind the clients that they were very customers that they were very time focused they answered the phone before it even rank I went there systems allowed him to do that but that's ah that's a speck that's a critical to quality spec so we're going you know we're going to respond within one minute we're gonna time it you're going to check into your hotel within one minute you're going to check into whatever within sixty seconds okay amazon's very time based so it's immediate it's time it's very is measurable very measurable so how long you gonna wait to get your the proofs on your photography how long years they're going to take to get my tiles okay what what's the what's the budget is it going to change it all how reliable is what you're telling me you saw you said I was going to get eight good ones okay I got zero out of eight in the first batch and I get two out of the second batch the reliability was terrible so our ft is right first time I'm going to get six signal level performance meaning no defects essentially cover liable is your is your business and reliability applies to services well as product accurate amounts on time accurate information how reliable is your website all right empathy how well do you really understand my problem my needs my business my customers empathy is huge empathy is huge so it uh how well do you really know may do you know what I read how in the world is amazon know what millions and millions and millions of people read so that they can recommend a book to you they do and they get it right a lot all right assurance okay the end of the day you know I don't trust you I trust you it doesn't does it does it appear to me like you know what you're talking about so when you tell me it's it's on its way where is it well I can't tell you where it is but I could tell you it's on its way I always do this when I go because I fly every week I go up to the year I go up to the terminal and first thing I do is look out the window see if there's an airplane at the gate because I'm now armed with just a little bit of data to go up to the attendant he was standing there and it says the flights leaving in ten minutes and I might say to me can you give me an update on when the fights actually gonna leave and if they say well it says ten minutes there's no plane so how is that gonna happen in ten minutes and the minute you provide them with just a little bit of data there like oh well you're right it's actually going to be a little while it helps to have a little data sometimes right but that's the idea so you lost me with assurance there when you said we were leaving in ten minutes and there's no plane or no crew okay so the importance performance created this is a great guy great way to just simply prioritize something so one how important to the customer are the various things that we've identified or do and then how well are we doing those so what might be an example in the simulation we played of something that was really important to the customer hi importance to the customer that we were not doing well and we might come up with things like on time delivery throughput I wanted thirty I needed thirty and ten minutes I get zero so throughput quality diamonds in particular okay I want great quality I didn't get it low performance this quadrant right here is where the action is where the opportunity is so we want to go into anything identified in this quadrant our businesses thanks think about this and whatever business you're in what is really important to the client by what we can't do this if we haven't sat down and talked to our customers and figured it out but what is really important to them here that we're not really doing very well that's where we want to focus our priorities in our projects if it's not that important to them and we're not that good at it we could let's leaking sleeping dogs lie so to speak or just not not prioritized that is march because it's not as important to the client this is where the action is now here's the trick all right, 00:32:11.456 --> 00:32:13. we want to sustain what we have out here, of course, 00:32:13.64 --> 00:32:16. but what do we do with stuff over here? We're really 00:32:16.3 --> 00:32:17. good at it, 00:32:18.95 --> 00:32:21. but it adds no value ours so not important to the 00:32:21.09 --> 00:32:25. client an illustration of this would be stapling 00:32:26.15 --> 00:32:26. and the game 00:32:27.89 --> 00:32:30. what we're really good at stapling we're really good 00:32:30.57 --> 00:32:33. at filling requisitions you know we're really good 00:32:33.31 --> 00:32:33. at 00:32:35.05 --> 00:32:36. get things started 00:32:38.15 --> 00:32:40. but it's of no value to the customer, the customer 00:32:40.73 --> 00:32:41. doesn't want the staple 00:32:43.42 --> 00:32:44. that's irrelevant 00:32:45.25 --> 00:32:48. okay, we're really good at signing our names checking 00:32:48.59 --> 00:32:52. boxes doesn't mean anything to the customer, so this 00:32:52.11 --> 00:32:55. little tool allows us to really stiff differentiate 00:32:55.77 --> 00:32:58. prioritised what do we want to focus on and what do 00:32:58.33 --> 00:33:00. we want a table a lot of times from a resource ing 00:33:00.96 --> 00:33:03. standpoint we could take resource is from here 00:33:04.65 --> 00:33:06. and put them in projects here and get things done 00:33:06.96 --> 00:33:09. a lot quicker a lot of organizations have projects 00:33:09.4 --> 00:33:13. going on that are completely worthless from the customer's 00:33:13.78 --> 00:33:15. point of view and they're not gonna actually result 00:33:15.31 --> 00:33:16. in any any payment 00:33:20.45 --> 00:33:23. so to summarize this little section on voice of customer 00:33:23.41 --> 00:33:25. what's the customer expect in terms outcome what's 00:33:25.75 --> 00:33:27. the process they've got to go through to get that 00:33:27.77 --> 00:33:30. outcome sometimes we call that the easy to do business 00:33:30.45 --> 00:33:33. with factor how easy is it to meet for me to get the 00:33:33.85 --> 00:33:37. outcome this results than in an evaluation and customers 00:33:37.82 --> 00:33:40. are evaluating us all the time and what they're evaluating 00:33:41.0 --> 00:33:44. us on is what are they experiencing in relation to 00:33:44.78 --> 00:33:47. what their expectation is so when you go to disney 00:33:47.54 --> 00:33:49. world and they tell you you know you're going to stand 00:33:49.45 --> 00:33:52. in line for thirty five minutes from here they're 00:33:52.35 --> 00:33:53. setting an expectation 00:33:54.95 --> 00:33:57. and when you get on that ride in thirty three minutes, 00:33:58.25 --> 00:34:00. by the way they don't guess they know it's not and 00:34:00.89 --> 00:34:02. I think it's an I know 00:34:03.2 --> 00:34:04. now you're getting on the right and thirty three minutes 00:34:04.98 --> 00:34:05. what do you think 00:34:07.4 --> 00:34:08. I made good time 00:34:10.17 --> 00:34:12. you just wasted thirty three minutes stated in a line 00:34:12.13 --> 00:34:15. and you're happy about it but that's a play on this formula right here, okay it's knowing your system so well and delivering within a very precise time of that you want to pat it a little bit so that you you deliver better than expectations and this is where you get promoters so it looks similar to this we've got our outcome if our outcomes better than expected, we were that's that's certainly great and we meet the outcome alright that's called satisfaction if we don't meet that's no good our process we dazzling our customers satisfying our customers or dissatisfying them where are we so we actually use this tool that bring customers in and have a conversation with us where would you pin the dots so to speak on the grid and uh here's an interesting statistic if they stuck it right in the middle they said you know what I'm satisfied with your process you're east you're easy enough to do business with and yeah you're meeting my outcomes we'll put you right in the center sixty eight percent of customers in the center will switch sixty eight percent when another value proposition comes along they like a little bit better wow sixty eight percent so you know over two thirds are going to say well yeah I like doing business with you and it's satisfactory but uh you know I always say this is kind of like uh if you set up a good friend on a blind date and then they went out on this blind date and then you know after the date you said so you know tell me about how was it you know that was satisfactory not feeling a lot of passion there with satisfactory so satisfactory and customer satisfaction which was a mantra of the nineteen eighties customer satisfaction this and that and everything else is no longer uh a world class business practice the idea of these days is advocates the howl of wow the dazzle him really really stretched so they're there there they're getting an experience beyond what they expected so you're really wowing them with whatever you do and this is particularly important in the service sector incidentally why do most organizations leave ah a vendor or supplier and it's it's it's more often due to due to process than outcome okay now come on I'm all right but man you're a pain in the rear to do business with I just can't stand it anymore so it's a it's it's a very it's a very worthwhile analysis to do with your customers the value stream when we're spend more time on value stream mapping and things like that in the next segment but the value stream is all of these activities that flow across it's the red dots the yellow dots the dimes that flow across to get value through to that customer so it looks essentially a value stream map looks at a high level like this so we've got the customer out here I need thirty in ten minutes my expectations my critical to quality are you know, diamonds without tails and red dots that don't touch diamonds and yellow dots that don't break the rings that kind of thing and then we've got all these activities across our stream these would be those functional silos, okay? We're looking for flow here to get that to the client and then we've gotta have ah, if it's tile, I gotta have material. Don't making my tile with there's deliveries there's there's paperwork I've got get people I had to rely on. So a value stream map is a very useful way. Whether you're running a one person shop, a two person shop, the value stream app shows you the architecture, if you will, of the business system and where you fit within that system. So you could be a person inside an organization working in a red dot department, so to speak. Or you could be this could be your whole business. You could be part of a values larger value stream where you've got you get henry ford understood this one hundred years ago. He's got miners, you know, bring it, you know, and foundries and stamping operations and assembly operations and dealerships. You know that the value streams huge and we could see that. And essentially, any business. It's it's a serious relationships. And then we've gotta have some master planning master schedule. I like to think of this section right here is the air traffic control system. How do we make sure lot of companies use e r p enterprise resource planning type tools, m r p and s a p these different softwares and tools that are available to help fly the plane safely in and out, so to speak the materials in and out smaller businesses can do this very simply, with with an excel spreadsheet or a whiteboard. Quite honestly, but this is going to be this is this is going to tell us, where are we what's, the ones the customer going to get it it's, a it's, a very useful tool to just organize and orchestrate the work I like to think of this too is like the orchestra of a conductor, the conductor of an orchestra. Sorry, so the you know that the orchestra's got to buzz and drums and percussion. It's got these functional expertise and that's a good thing, but that's that harmonizer that the conductor that's pulling altogether and plane is one. And we need that in business more than ever before. So it's harmonized in japan. They call it high junker, which is peaceful order. We're playing in a very peaceful, graceful, comfortable way, not what we witnessed in the round, one of the of the lean sigma game.

Class Description

Ready to finally let go of the unproductive processes that are holding you back at home, in the office, and in your creative life? Join educator and business consultant John Murphy for a three-day introduction to streamlining your creativity.

As he shares techniques from his critically-acclaimed books Beyond Doubt and Zentrepreneur, John will cover ways to make your day-to-day life and tasks better, faster, and more efficient. You’ll learn about the DMAIC model of process improvement, and how it can be used to approach problem solving in an effective, rational way. You’ll also learn about how to prevent processes from being bogged down by waste, duplication or redundancy. John will cover Kaizen -- the art of making good change -- and give you tools to change both your processes and your mindset.

By the end of this course, you’ll have an increased creative energy and processes that will help you implement creative solutions in a balanced, harmonious way.

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