Run a Better, Faster, Leaner Business

Lesson 6 of 29

Establish Your Baseline

 

Run a Better, Faster, Leaner Business

Lesson 6 of 29

Establish Your Baseline

 

Lesson Info

Establish Your Baseline

00:00:02.03 --> 00:00:05. And the you know the prior two segments we way played 00:00:05.66 --> 00:00:08. a simulation we learned about just how easy it is 00:00:08.34 --> 00:00:12. to complicate something simple and uh and then we 00:00:12.23 --> 00:00:14. started well how do we fix this how do we go about 00:00:15.47 --> 00:00:19. optimizing a value stream like this we said well in 00:00:19.16 --> 00:00:23. order for us to be aligned we have to be focused and 00:00:23.69 --> 00:00:27. in order for us to be focused we have to have a common 00:00:27.66 --> 00:00:30. folk a focal point we can't be focused if we're all 00:00:30.52 --> 00:00:33. looking in a different direction and we can't be aligned 00:00:33.39 --> 00:00:36. if we're focused so the idea now is to say well what's 00:00:36.0 --> 00:00:38. that focal point you're really going to be a high 00:00:38.64 --> 00:00:42. performing team what do we all a minute what's the 00:00:42.01 --> 00:00:45. what's the common mission and the...

n an earlier segment 00:00:45.44 --> 00:00:48. we call that the big c customer the end user if we 00:00:48.85 --> 00:00:53. can get a line around the big c and user all right 00:00:53.77 --> 00:00:57. now we can begin to get aligned for focus we get a 00:00:57.23 --> 00:01:00. line so that includes our supply base the people that 00:01:00.69 --> 00:01:04. we we buy materials from the people we surround ourselves 00:01:05.03 --> 00:01:07. advertising marketing publicity 00:01:09.27 --> 00:01:11. subcontractors whatever it is we're using whatever 00:01:11.75 --> 00:01:15. business we have we can start to surround ourselves 00:01:15.81 --> 00:01:20. with teammates virtual and otherwise because now we 00:01:20.35 --> 00:01:23. have a common purpose in common mission and that would 00:01:23.39 --> 00:01:26. be delivering value to that big c so that's absolutely 00:01:26.93 --> 00:01:29. critical so you know when I started my company twenty 00:01:29.25 --> 00:01:32. four twenty six years ago actually out of my basement 00:01:33.17 --> 00:01:35. with nothing more than I was going to say laptop but 00:01:35.64 --> 00:01:38. they didn't exist at that point so I'm working with 00:01:38.0 --> 00:01:39. an old you know, 00:01:40.37 --> 00:01:41. desktop computer and a 00:01:43.42 --> 00:01:46. I don't have a cell phone yet either so a phone with 00:01:46.35 --> 00:01:48. a cord you know that kind of thing and I'm trying 00:01:48.93 --> 00:01:52. to figure out howto make it incidentally I had two 00:01:52.82 --> 00:01:55. business partners start this company with me and both 00:01:55.1 --> 00:01:58. left within six months so it was a difficult time 00:01:58.83 --> 00:02:01. didn't have money the spirit fact was in a lot of 00:02:01.84 --> 00:02:04. debt so how do you start a business when you don't 00:02:04.23 --> 00:02:07. have a lot of money and you're in debt and you are 00:02:07.69 --> 00:02:08. ah 00:02:09.42 --> 00:02:12. you're not even clear on what it is you're doing I've 00:02:12.27 --> 00:02:14. never consulted before I came out of an executive 00:02:14.73 --> 00:02:17. position now I was going I wanted to teach and I wanted 00:02:17.43 --> 00:02:19. to share what I could 00:02:21.42 --> 00:02:23. the only way for me to do that successfully was to 00:02:24.11 --> 00:02:27. know my audience what would what would they be willing 00:02:27.71 --> 00:02:28. to pay for? 00:02:29.72 --> 00:02:32. You know anybody can put a shingle up and say I offer 00:02:32.5 --> 00:02:35. cheap consulting but what would be different? What 00:02:35.08 --> 00:02:37. would be a differentiator which is what led me end 00:02:37.62 --> 00:02:41. of writing books, giving seminars, getting people 00:02:41.53 --> 00:02:44. to come to me rather than me going to them and knocking 00:02:44.62 --> 00:02:48. on doors, marketing clever advertising where you if 00:02:48.14 --> 00:02:49. you don't have money it's hard to advertise there 00:02:49.83 --> 00:02:52. was no social media going on back then either so he 00:02:52.56 --> 00:02:55. had to really you know test yourself a little bit 00:02:56.32 --> 00:02:59. so the way to do that was to make sure that I really 00:02:59.32 --> 00:03:00. understood 00:03:01.2 --> 00:03:02. what the market needed 00:03:04.02 --> 00:03:08. and a way to package it and deliver it in a in a meaningful 00:03:08.66 --> 00:03:11. way and get paid for it well that's what's allowed 00:03:11.47 --> 00:03:14. me to take a pretty radical idea at the time I was 00:03:14.3 --> 00:03:17. out selling change management before it was considered 00:03:18.42 --> 00:03:22. common terminology in vogue and whatnot and now now 00:03:22.21 --> 00:03:23. it's become more popular but 00:03:24.92 --> 00:03:27. it wasn't easy so I I empathize with anyone who's 00:03:27.53 --> 00:03:30. out there trying to start up a solo business or a 00:03:30.01 --> 00:03:32. small business or is running into resistance in a 00:03:32.87 --> 00:03:35. big business because it's it's not easy on this side 00:03:37.02 --> 00:03:39. segment we're going to start looking at some of the 00:03:39.44 --> 00:03:44. basic tools to gain credibility I don't understand 00:03:44.7 --> 00:03:47. more about what we can and can't do capacity and things 00:03:47.84 --> 00:03:48. like that 00:03:49.42 --> 00:03:51. and then if we're a new business we'll learn tools 00:03:51.69 --> 00:03:54. about what we can use to build build a healthy business 00:03:55.52 --> 00:03:57. and we're going to take all of these learnings into 00:03:57.52 --> 00:04:01. a future segment where we're actually going toe reinvents 00:04:01.05 --> 00:04:05. so to speak or reengineer the lane sigma game that 00:04:05.27 --> 00:04:08. we played earlier and practice some of these okay, 00:04:09.54 --> 00:04:11. so peter drucker very 00:04:12.74 --> 00:04:16. well one of the most renowned business authors and 00:04:16.18 --> 00:04:18. consultants in the last hundred years 00:04:20.54 --> 00:04:23. said this what gets measured gets managing what managed 00:04:23.0 --> 00:04:26. gets done so in this is session that segment we're 00:04:26.76 --> 00:04:30. going to be looking at the m and domestic okay, which 00:04:30.88 --> 00:04:33. is the measure so we've defined our current state 00:04:33.31 --> 00:04:36. we've defined our customer we've defined our market 00:04:36.77 --> 00:04:39. things like that now what are we gonna measure? So 00:04:39.21 --> 00:04:41. we had these measures from before we'll review that 00:04:42.24 --> 00:04:44. but what are we going to measure? The purpose here 00:04:44.69 --> 00:04:47. is again and out to go back to that discipline that 00:04:47.83 --> 00:04:52. rigor that rational problem solving model and 00:04:53.54 --> 00:04:55. focus on the m the measure part 00:04:56.49 --> 00:05:00. incidentally I'll say this years ago domestic used 00:05:00.42 --> 00:05:01. to be just make 00:05:02.72 --> 00:05:04. there was no a d in it 00:05:05.34 --> 00:05:08. so think about that for a minute what might go wrong 00:05:08.94 --> 00:05:14. if we are using a mayock model as opposed to a d make 00:05:14.49 --> 00:05:19. model? Is it possible we have a bunch of black belts, 00:05:19.46 --> 00:05:22. six sigma black belts people running around measuring 00:05:22.31 --> 00:05:25. a lot of stuff and analyzing a lot of stuff that makes 00:05:25.81 --> 00:05:28. no difference at all? It isn't clearly defined and 00:05:28.98 --> 00:05:33. prioritized you better believe it so once again without 00:05:33.07 --> 00:05:36. knowledge, with good intentions and a lot of best 00:05:36.07 --> 00:05:40. efforts but without profound knowledge it almost ruined 00:05:40.2 --> 00:05:42. some companies where they were out getting into these 00:05:42.93 --> 00:05:45. what some referred to a statistical cults and they 00:05:45.95 --> 00:05:48. weren't too actually focused on what really matters 00:05:48.74 --> 00:05:51. so this is not an exercise in just collecting a lot 00:05:51.16 --> 00:05:54. of data and, you know, spending a lot of time mapping 00:05:54.07 --> 00:05:56. and things like that. It's. Better fact. I was working 00:05:56.38 --> 00:05:58. with one of the largest pharmaceutical companies some 00:05:58.58 --> 00:06:00. years ago when I went in, and they were very proud 00:06:00.39 --> 00:06:02. of all the there process maps. They've been mapping for a year, and they had maps all over the place. Good looking maps. You know, I spent a lot of time and physio, and some of these softwares allow you two to map things out really nice. And I said, well, this is this is fascinating, but when did you go into the mapping business? I said what are you talking about put these air amazing how much do you get paid for these maps and yeah they kind of laughed too and they go I mean you're serious we have a sure if you've spent a whole year you just told me mapping out processes and all this kind of stuff do you sell these to get paid for these what was I really saying this is all a form of non value added activity is all waste now it may be necessary to get characterized around what is currently going on but if you're going to spend the year mapping things and not changing anything using these maps to gain knowledge and make things better you're wasting your time now that really offended some classic black belts if you will as they were on toll gate number two you know getting through the measurement phase and getting everything mapped out not recognizing that it was a form of waste here's another metaphor I use I'd like to teach with these little silly stories but I think it's helpful let's imagine for a minute or a customer in this case we're home and we have a leaky faucet drip drip drip drip drip of the faucets leaking and we decide well we don't know how to fix it so we're going to call up black belt we're going to call up a master black boat we're going to call a plumber we're gonna call it an expert, and so the expert drives up in their van or their truck, and they've got let's. Just call it a couple hundred tools in their van around their truck. They've got all kinds of stuff somebody do want them to use. 00:08:01.84 --> 00:08:04. Think about that for a minute. You're the customer, 00:08:05.04 --> 00:08:07. and you have, ah, dripping faucet, 00:08:09.08 --> 00:08:11. so let's, start with principal number one, specify 00:08:11.79 --> 00:08:14. value in the eyes of the customer. What do you want? 00:08:17.88 --> 00:08:18. Fix it 00:08:20.33 --> 00:08:20. when 00:08:21.93 --> 00:08:22. now 00:08:23.68 --> 00:08:27. how many tools do you want him to use you don't care 00:08:28.18 --> 00:08:30. but what if they're trying to get certified 00:08:31.88 --> 00:08:32. teo 00:08:33.38 --> 00:08:35. demonstrate that they've got one hundred hours using 00:08:35.73 --> 00:08:39. a drill bit and get two hundred hours using a sauce 00:08:39.06 --> 00:08:42. all and I've got they got to use all of these tools 00:08:42.33 --> 00:08:45. to get their journeymen status or get their black 00:08:45.52 --> 00:08:47. belt or whatever they're green belt some of these 00:08:47.69 --> 00:08:52. terms used here's the point we've completely gotten 00:08:52.19 --> 00:08:56. the cart in front of the horse so to speak if our 00:08:56.12 --> 00:08:59. systems are designed around getting people certified 00:08:59.06 --> 00:09:01. toe put some more letters after their name and not 00:09:01.8 --> 00:09:06. deliver value to the client it's a trap and it's cost 00:09:06.29 --> 00:09:09. companies dearly around the world so what is it really 00:09:09.83 --> 00:09:13. important value in the eyes of the client or the customer 00:09:13.56 --> 00:09:17. fixed the leak get it right the first time I don't 00:09:17.33 --> 00:09:21. know you don't have to come back do it now be easy 00:09:21.42 --> 00:09:25. toe work with user friendly and don't charge me an 00:09:25.26 --> 00:09:28. arm and a leg there's your value proposition right 00:09:28.39 --> 00:09:33. there so that that one person solo business called 00:09:33.54 --> 00:09:35. I'm running a little plumbing operation 00:09:36.58 --> 00:09:40. if I lose focus on that simple value equation and 00:09:40.97 --> 00:09:46. it becomes more about me and the my certification 00:09:46.88 --> 00:09:50. and we've completely missed about that's going on 00:09:50.88 --> 00:09:54. all the time and it's actually crushed some big companies 00:09:54.85 --> 00:09:57. and it's crushed thes certified blackball programs 00:09:57.89 --> 00:10:00. they have on some of these tools so I'm going to cover 00:10:00.17 --> 00:10:03. the tools so yeah important to have the right tools okay, but having the right tools is significantly different different than using them right? You could have a brand new set of world class golf clubs and be lousy at golf but if you notice the pros have a pretty good set of tools so the tools matter but it's how we use them that makes all the difference in the world that's what this section's really all about is getting into some of the tools so in the measurements were no tools but they used a loose term for various things but process follow maps are considered tools that map let's map out the process there's different types of process maps were going to look at those time value maps how does this look relative teo time we can map it out using something called the time value map we'll review the value add and non value added activity we talked about the last segment, but that really cuts to the chase here and it forces us to think outside the classic box a little bit and we're going to look at something we call you tease a uti is an undesirable effect so what's going on that's just not pretty. We're not proud of not working force, so we're going to capture all of that in the measure phase and then it's that data that we bring into the analysis phase here to figure out why we have these beauties what's causing them what's, causing the leak. And what's. The best way to fix that leak. So that it's, right, first time it's, done efficiently and effectively with we've delivered good, good customer service. In fact, that plumber story is a true one for me, in some cases, because years ago I had it wasn't a leak. It was a doug garbage disposal that wouldn't work. It froze up, and I don't know how to fix it. So I brought the, uh, the expert in 00:12:02.07 --> 00:12:05. the plumber, and he came in, and with one tool, 00:12:06.67 --> 00:12:07. he llo wrench, 00:12:09.23 --> 00:12:12. he fixed it. It took him, like five minutes at the 00:12:12.44 --> 00:12:12. most 00:12:14.83 --> 00:12:18. and, ah, that he did something he didn't have to dio. 00:12:20.37 --> 00:12:22. He looked at me and he goes let me show you how I 00:12:22.3 --> 00:12:24. did this and he taught me how he did it 00:12:25.67 --> 00:12:27. and then he gave me the wrench 00:12:28.87 --> 00:12:32. he said keep it it's for your ears cost me about thirty 00:12:32.2 --> 00:12:34. five dollars and this is like twenty years ago to 00:12:34.34 --> 00:12:36. thirty five dollars for this little wrench was not 00:12:36.75 --> 00:12:39. exactly the best deal but I still have the wrench 00:12:40.11 --> 00:12:43. and I use it teo in some talks that I give to simply 00:12:43.71 --> 00:12:45. demonstrate the howl of wow 00:12:46.87 --> 00:12:49. and in that little extra that he didn't have to do 00:12:49.98 --> 00:12:52. that I have to give me the wrench of course he probably 00:12:52.2 --> 00:12:55. paid two bucks for it and he didn't have to teach 00:12:55.03 --> 00:12:57. me how he fixed it he could have been like you know 00:12:57.04 --> 00:12:58. what this guy's an idiot 00:12:59.69 --> 00:13:00. uh 00:13:02.27 --> 00:13:05. up I'll be back I get another thirty five dollars 00:13:05.36 --> 00:13:08. for a five minute job with a two dollar wrench he 00:13:08.02 --> 00:13:10. didn't do that he gave me something I didn't expect 00:13:10.54 --> 00:13:12. that was wow that's that's a little different than 00:13:12.38 --> 00:13:17. the lexus story I told earlier but if you know a solo 00:13:18.27 --> 00:13:21. plumber could do it with a simple wrench any one of 00:13:21.88 --> 00:13:24. us could do it it's very important to keep in mind 00:13:25.11 --> 00:13:25. all right 00:13:26.87 --> 00:13:29. so the critical performance metrics that we typically 00:13:29.51 --> 00:13:34. look at when we were building a world class business 00:13:34.13 --> 00:13:37. larger small some you know somebody that could compete 00:13:38.1 --> 00:13:39. with the best of him? 00:13:40.97 --> 00:13:43. The first site about appears time so how long does 00:13:43.42 --> 00:13:47. it take to complete the process and deliver the solution 00:13:47.48 --> 00:13:50. from start to finish along too to take that plumber 00:13:51.46 --> 00:13:54. to respond to my call fix the leak 00:13:56.37 --> 00:13:58. and you know process the bill so to speak 00:13:59.37 --> 00:14:03. that time is something the people are measuring and in conscious of whether we know it or not how long's it take to get my photographs process once a tiger get take to get my tile installed and is it going to be done right the first time whatever business we're in what am I going to get my quote is it going to be right that that kind of thing a total throughput capacity did I get the thirty I needed in ten minutes now I didn't even get close well I need thirty and then we run into the but well yeah but we ran into some complications yeah but we've got some capacity challenges you know that kind of thing beware the yeah but I'm gonna come back and talk about the abbotts in another session as well was it on time and how was the service the lead time how long did it take you to get here and how long did it take them to fix it the cycle time comparing the value at non value add let's let's look at that ratio incidentally it's not unusual to see that over ninety five teo ninety nine percent of the time that that widget are that form or that service factor is in their value stream ninety nine percent of the time there's no value being added it off ninety five to ninety nine percent significant amount I mean only about two percent one to two percent is value had bean delivered so that's that form that we played with in the first session just sitting there and waiting and sitting there and waiting and sitting there and waiting or then being checked which doesn't add value that kind thing so let's look the va not envy a activity will certainly look at quality wasn't right was it a precise was a consistent the inventory these air off critical measures how much inventory do we have sitting there and health how frequently does it turn so it organizations like a target or a walmart or a amazon let's let's let's look at our turns that returning 00:15:58.987 --> 00:16:02. it fast cause that sze cashflow right so again from 00:16:02.53 --> 00:16:05. a financial standpoint our costs are cash flow our 00:16:05.39 --> 00:16:08. margins are return on investments these air all critical 00:16:08.65 --> 00:16:10. metrics no matter what business you're in and what 00:16:10.81 --> 00:16:14. you're running all right on productivity just how 00:16:14.66 --> 00:16:15. smart are we working? 00:16:17.05 --> 00:16:20. All right that's it it's a measure of organizational 00:16:20.14 --> 00:16:22. capability and smartness if you will all right so 00:16:22.53 --> 00:16:25. those are some of the critical measures to review 00:16:25.3 --> 00:16:27. the value had non value add value at is where we're 00:16:27.88 --> 00:16:30. actually changing for the first time that which we're 00:16:30.02 --> 00:16:33. getting paid for, so we're processing the photos were 00:16:33.75 --> 00:16:36. installing the tile, okay? 00:16:37.91 --> 00:16:39. We're grouting the tile 00:16:40.81 --> 00:16:43. we're we're doing whatever it is that we're in business 00:16:43.75 --> 00:16:47. to do, okay, so we could talk specifics, as is calls 00:16:47.34 --> 00:16:50. commander is his questions come in, but the value 00:16:50.09 --> 00:16:53. add is where we're actually putting the red dots on 00:16:53.17 --> 00:16:55. the paper because the client has to have the red dots 00:16:57.51 --> 00:17:00. when we're putting ah review in or a second review 00:17:00.57 --> 00:17:02. and we're signing forms and the client says, I don't 00:17:02.59 --> 00:17:05. care if you review it a hundred times I'm not paying 00:17:05.46 --> 00:17:07. for that. I'm paying for quality right first time, 00:17:08.41 --> 00:17:11. so your review process isn't changing it in any way. 00:17:11.85 --> 00:17:14. It's a non value added activity movement, by the way, 00:17:14.99 --> 00:17:17. is a non value added activity one of the seven waist 00:17:17.33 --> 00:17:19. moving it from there to over there doesn't change 00:17:19.32 --> 00:17:20. it, it just moves it 00:17:22.01 --> 00:17:28. so oh flipping pages, non value added moving the ruler 00:17:29.81 --> 00:17:33. non value added drawn the line value added moving 00:17:33.07 --> 00:17:35. the ruler, not value added, so we start to really 00:17:35.74 --> 00:17:38. look at our business through the eyes of value at 00:17:38.34 --> 00:17:43. a non value, and we start to go wow, our diamond department. 00:17:45.41 --> 00:17:47. Which seemed to be a constraint. 00:17:49.34 --> 00:17:52. We're spending roughly half. Kurt was spending half 00:17:52.64 --> 00:17:54. his time adjusting the ruler 00:17:55.81 --> 00:17:58. that's, not value added, and then drawing the line, 00:17:58.35 --> 00:17:59. which is value added 00:18:00.35 --> 00:18:01. and then flipping pages. 00:18:03.18 --> 00:18:04. Flipping pages doesn't change it. 00:18:05.88 --> 00:18:09. Non value add, we start to look at those hundred plus 00:18:09.34 --> 00:18:12. steps that are in that process, not eight, but one 00:18:12.54 --> 00:18:15. hundred plus, and we start to recognize that. Wow, 00:18:17.18 --> 00:18:17. yeah, 00:18:18.68 --> 00:18:21. most of all are not adding any value at all. 00:18:22.83 --> 00:18:25. So what options do we have now? You know, we start 00:18:25.25 --> 00:18:25. to think about. 00:18:27.18 --> 00:18:31. Maybe we should not be thinking, adding service reps, 00:18:31.5 --> 00:18:34. adding more diamond operators, adding more overtime, 00:18:35.01 --> 00:18:37. adding more staff, adding better tooling. Maybe we 00:18:37.89 --> 00:18:39. should be thinking about subtracting some things. 00:18:45.58 --> 00:18:47. The data to evaluate I'm gonna walk you through some 00:18:47.76 --> 00:18:50. very specific questions now so again no matter what 00:18:50.33 --> 00:18:53. business you're in this this uh segment here is going 00:18:53.66 --> 00:18:55. to give you some great takeaways in terms of these 00:18:55.98 --> 00:18:57. air questions I need to ask 00:18:58.77 --> 00:19:02. to run my business intelligently especially entrepreneurs 00:19:02.17 --> 00:19:06. getting things started so the data and the questions 00:19:06.01 --> 00:19:09. to ask really fall into different buckets and then 00:19:09.04 --> 00:19:12. I'll ask what story does there's all this day to tell 00:19:12.78 --> 00:19:15. so the first bucket is market what do I really know 00:19:15.68 --> 00:19:16. about my market 00:19:17.55 --> 00:19:20. but I really know about my competition my customer 00:19:20.85 --> 00:19:23. the needs of the market my customers customer all 00:19:23.33 --> 00:19:24. the things we talked about a little bit earlier 00:19:26.08 --> 00:19:29. and what questions do I need to ask and answer about 00:19:29.14 --> 00:19:33. my operation my process itself the flow the sequencing 00:19:34.16 --> 00:19:37. the activity the ratio is a value at a non value and 00:19:37.86 --> 00:19:41. what do I need to low about my actual operation what 00:19:41.52 --> 00:19:45. do I need to know about my organization how I'm staffed 00:19:45.36 --> 00:19:47. who reports to who where the accountability and the 00:19:47.59 --> 00:19:50. ownership lies I've got to be thinking that through 00:19:51.18 --> 00:19:53. so going back to my own business twenty six years 00:19:53.8 --> 00:19:55. ago of the first things I did is I sat down I wrote 00:19:55.98 --> 00:19:57. a business plan it was 00:19:58.28 --> 00:20:00. probably twenty pages more than I needed to 00:20:01.77 --> 00:20:04. but I had to have a credible business this plan to go in front of any investor to say I need to borrow money to get this business launched and if the business investors or the banks or whatever look at it and go well I'm the one you where's your credibility where's your plan you know and that in my case it doesn't look like you're old enough to run a business I mean you're going to go out and counsel people on leadership and change and you look like you're twelve it was twenty eight time but I definitely didn't look like it so which organization going to look like all right support systems what kind of support systems do you need to run your business procurement purchasing you know where am I going to get my tile how am I going to get my towel? What options do I have everything from distribution publicity marketing uh social media what what is social what are these uh software's what software there you're going to use all right talk to run your business effectively you got to get you got to think about this whole this whole thing is a system and then finally what is your cash flow and what it's gonna look like what do you financial statements going to look like? Starting up a new business requires that you make projections you have pro forma statements to say here's there's here my assumptions and here's what I expected to deliver all right and is incredible. Well, come come back to that more and more as we get into it but we collect all this data if it's a start up this is all these air questions around getting started and we could tweak himto that mode or if we're already running a business that we're trying to make better triple in size or grow then what what questions white meat might we ask so let's let's uh let's look at how the story then unfolds and for trying to drive changing in an organization we'll start with our business case what's the overall business case but we're tripling in size and we need to be prepared for that or we've got customers really mad at us okay you like in the simulation the business case is that the customers really mad at us we're losing money we're swimming an inventory we've got serious quality problems okay enough enough, enough I get it we got we got problems by the way I've been running that simulation for many years now and everywhere I've run it I've had people tell me I is did you design this for our business is this is this about us including the u s government the military aerospace automotive healthcare banking pharmaceutical it's amazing because of the very common assumptions and paradigms of driving so here's our business case about the market data let's uh let's let me summarize uh some of the things we found out there well there's a need in the market customer wants thirty and we're getting them too and with a lot of cost associated that all right, I get it we're going to process data well, how long does it take us to do whatever it is we do how do we go about installing new tile? How do we go about and making it what our cycle times look like? What what is our business state of health organizationally how do we look how many different people are involved in the process? What kind of governance do we have in place and structure things like that? So we got red dot we got yellow dot this is how we're currently organized systems policies, procedures, information systems I kept asking during the simulation when was I going to get my order? I don't know I said well I'll get back to you touched on its way but I had no way to to visibly see where it wass this's going on all the time and then financial data clearly we had a compelling story there. So then what we do to bring about changes we summarize all this data we quantify it put numbers ratios percentages on it to say here is basically the story this is if we're going to being abroad change if we're going to be asking for loans to bring about a new business it's the same thing here's what we're is what we have on the market are market intelligence, our research here's how we're going to go about delivering that here's what our values streams going to look like here's how we're going to be organized here the systems were going to use to make it work here's how much money we project making this is how we're going to pay for everything let me summarize that let me quantify the return on in west investment in this case is opposed to the waist so for bringing about change to a current system we have focused on the waist which translates into return on investment because we're gonna be saving a lot of money stop that went in uh in bringing about the change we get into the major causes so here here are some of the cause is causing the udi's so we've got the u t is listed here I'll come back to that a couple of minutes if this is a start up instead of talking about major causes will talk about major success critical successfactors in order for us to quantify and deliver this kind of return on investment here the critical successfactors here's what we've gotta have and well and we lay it right out the problem statement is saying here is the problem in in a one or two line and I'll walk you through some examples you know and in a start up it would be well you know the opportunity, problem and opportunity are almost synonymous so the opportunity is such for the investor this's what this's what's in it for you solution's backs I'll come back and talk about it a little bit a cz well but a solution spec essentially paints a picture of what a winning solution looks like ahead of time and then we go ahead and weigh movinto execution and the improvement from the launch within each of those buckets we might find the beauties and we're looking for him to bring about change or unveil opportunity so think about this and wherever your workplaces what are some of the undesirable effects think about them in terms of time cost satisfaction or delight all right? So for example in market we say well, some of the beauties and market relating to our customer competition things like that would be we've got customers returning things not right that's undesirable customers rejecting deliveries that's no good we've got price pressures we're hearing in the market that are ten dollars per units too high so we've got to figure out a way and we're losing money with that we've got late deliveries we can quantify that we're losing market share those would be examples of you tease in our business relating to the market if we're a start up these would be things going on the mark in the mark that without our business might help solve these air needs and things that we can actually be part of the solution too in the process we have long cycle times high inventories piling up things like that low inventory turns excess non value added activity. Those air all you tease organisational data. We've got access over time, we had to run a lot of overtime. We've got unbalanced work. We've got some people busy other people not we've got just it's chaos. All right? We've got low productivity, all right? Especially when we compare it to the benchmark dating we've got perhaps in this case, the low morale people getting frustrated and we've got survey data things like that cos khun take to back it up. So whenever I see a uti from a client or a prospect, a customer wants to show me the data. I don't want opinion back it up with data that's part of the baseline. So when I hear a major client that I've been working with for some time now, tell me that we've got over seventy percent of our associates in this business unit not confident in our system and it's measurable that that's interesting. Seventy percent not confident. I think about that going back to sporting days and sake. If seventy percent of the team thinks we're gonna lose, we're gonna lose. Uh, so that's just no has no good.

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.

Reviews