Generate Value or Forget It!

George Lee Sye

I guess all of you have been closely watching and feeling your way through the economic situation as 2010 unfolds.

There is no doubt in my mind that the ripple effects of the events of 2009 will test our abilities to succeed in business today and maintain the quality of life we expect to have. With the tightening of credit controls and slowing down of markets, the approach most companies will take is to slash costs within the business.  Is this a sound strategy? Of course it is because in the short term there is significant pressure on revenue and credit so the obvious approach is to work on the cost side of the financial equation.

Does that mean you should reduce the level of energy you give to the ‘business improvement’ strategy you have underway?

Let me answer this question in this way.

YES, you should drop your business improvement strategy if existing efforts are not producing results of an economic nature and you have no desire to continue doing business.

NO, you should not if you are going to continue doing business, regardless of whether or not your existing BI efforts are producing results.

Not Getting Results

Most companies I have researched over the past decade in Australia are not getting the results they want with their BI strategies. They can significantly alter that outcome if they are prepared to rapidly change how they think and what they are doing. However, my experience is that the required change won’t take place until some point of desperation is reached. I guess those times are coming for many. I believe many leaders are now realizing that company profitability has allowed inadequate BI strategies to exist in their company.

The question we must ask ourselves today is are we prepared to do something different, are we prepared to challenge our own beliefs and change our paradigms?  If you would like to get better results, take a minute or two to read on.

(A) Value Generation Strategies for Today’s Successful BI Groups:

• COLLABORATE with other companies to deliver lower cost, high quality business improvement education – there is no need to go it alone today and bear all costs.
• Rigourously TRACK THE VALUE each trained individual adds to the business as a result of applying BI methodology after training – every trained person should know their financial value.
• Be very clear and very confident about the ECONOMIC VALUE the BI Strategy has brought to the business. If you are not clear about the numbers, you are probably not adding value of a financial nature in my opinion.

(B) Business Execution Strategies for Value Today:

• Have a simple yet robust IMPROVEMENT PROJECT SELECTION process that is (a) supported by Value Stream Analysis and (b) driven by department or unit leaders
• Maintain the FOCUS of project team leaders on HIGH VALUE PROJECTS – this means giving them time and resources to do the work rapidly
• Lock in less singularly substantial benefits more QUICKLY and more FREQUENTLY
• Simplify your EXECUTION MODEL so the focus is consistently on progressively moving performance for key variables
• Change your leadership MEETING STRUCTURE so there is minimum replication of ‘time span of focus’ and ‘level of detail’ at the different levels of meetings – the effect of this will be profound.

If you would like to know more about any of these items, particularly those relating to business execution and meeting structures, drop me a line and I will get in contact with you.

Good fortune to you in these interesting times my friend

George Lee Sye