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  • $1,000,000 Reduction in Costs


    Today we hear from Simon Spiers – Manufacturing Manager, Leeton Mill, Sunrice, Leeton NSW

    Are these the kind of results you have been looking for?

    Simon Spiers Testimonial Sunrice“Sunrice is a large rice processor located in Leeton NSW. We employ well over 150 people and run a multi-shift operation that can run 7 days a week.

    Our team members were all working extremely hard, but in different directions. A small numbers of people were depended on to deliver on the results. Team members were constantly waiting to be told what to do. We were all operating at the level below where we were paid to work.

    Personally I needed to move from being a reactive manager who was bogged down in the day to day, to a leader who was managing the issues, engaging staff, and getting results financially and in all other areas.

    Over a period of 12 months I have had regular mentoring sessions with Jason. We have implemented a simple system that has aligned and focused our leadership team and myself. We combined my personal mentoring sessions with having Jason run some focused training workshops to provide clarity about how to implement the systems and perform our roles more effectively and with less pressure.

    I have successfully taken on a larger role as the Site Operations manager with considerably more responsibility. Work is more enjoyable as each day I can see progress on the previous day. Rather than being on the treadmill with little to show for my efforts, working hard is now delivering results!

    The Leeton manufacturing group has definitely made some massive improvements in many aspects of the business, especially in quality, safety, cost reduction and people development. The business has taken out at least $1,000,000 of cost in the past 12 months; Jason’s mentoring has been a significant contributor to this.

    If a manager wants to improve how they manage, how their team performs and how their business performs, then Jason as a coach would be an excellent investment.”

    Simon Spiers – Manufacturing Manager, Leeton Mill, Sunrice, Leeton NSW

    If you or someone you know wants these kinds of results in your business call me on 0488 337 666 for a chat about how we can help.

    If you would like to read more about real life results that can be achieved in your business, click here

    I look forward to speaking with you.

    Jason


    0 comments.

    Tales From The Real World: Stability Brown Belt


    White Belt to Black Belt Journey of Stability

    Here is this weeks ‘Tales from the real world’ extract from our book ‘Manufacturing Money’

    Stability is about helping the organisation improve the way it delivers value to the customer. We are looking to have the business system lift its treatment of the customer to such a level that the performance is the source of key competitive advantage in the market place.”

    You can read about the full ‘White belt to black belt journey of stability’ (see image on right) in Chapter 6 of ‘Manufacturing Money‘ in paperback or kindle versions.

    Today however we will look at a real world example from the Stability Brown Belt level which we label as ‘Comprehensive’.

    Until the Brown Belt level the focus is squarely on the product being manufactured correctly. At Brown Belt level we broaden our expectations of quality to look at the whole experience that the customer walks through in doing business with us. Instead of being pre-occupied with trying to make a product that won’t be rejected by the customer and get it out of the door we can actually monitor that the product is being produced and shipped correctly. We can spend more time looking at how to use the total business process, not just the factory, as a competitive advantage for the company by creating a superior experience for the customer.

    Integrating the operations behaviour with the activities of the Marketing and Sales function supports providing a greater value experience for the customer and helps lift price, resist price pressure, gain design insights for new products, and generally run a profitable business with less waste.

    Tales from the Real World

    Small importers of whitegoods are looking to grow their business by providing a great range of products in a responsive way to their markets. These companies do not have the cash reserves to have large amounts of slow moving stock. Cash cannot be tied up in large orders for goods that will last them for six months or more at normal consumption. The same companies do not have the technical resources to troubleshoot product problems. They are much more akin to a retail outlet.

    I worked closely with our Australian Export Sales Manager and we were both on mission to lift our sales volume for export products. He and I visited one of these importers in Turkey who had been a long term customer of ours, but not growing. This customer was handled through the overseas sales office of our corporation and basically had been neglected. He had arranged the visit and believed that there was a significant opportunity to lift sales volume with this company.

    We arrived and after introductions we were taken in to meet the Managing Director. Once we had been served with some of the strongest coffee I have ever had the Managing Director proceeded to harangue us in Turkish about all of the problems with our product. We had a translator, who I think had toned down the words, but we understood the general intent and the passion that the MD felt. No translation was necessary; he was exceedingly unhappy.

    They loved our product, the style, the performance, and the way it was packaged. They wanted to buy more but they absolutely hated the other parts of doing business with us.

    The blistering critique of everything we did with them continued. The Managing Director smoked incessantly throughout this. The room was stuffy and the thick blue smoke was now smog. I swear the passive smoking has taken years off of my life!

    Based upon the translation we put together a list of our failings which were mainly to do with the supply of spares, technical information, some quality issues, product options they wanted, and minimum order requirements that they felt were unreasonable. When we returned to our hotel, and thanks to the time difference, we could be in touch with our home base and get some answers.

    The first priority was to have all the technical information they needed sent over as well as spare parts information that they asked for. None of this was difficult, it just wasn’t happening. The communication from the customer to us was just non-existent (This is way too common in companies we meet).

    We researched the product options that they asked for and confirmed that we could do them. We were unaware that they wanted these options.

    The minimum order requirement was irrelevant to us and far higher than necessary. We were happy to make in smaller batches and it actually suited us to work this way.

    By the end of the following day we left with the promise of more orders and over the next 12 months the business with that company doubled.

    If you would like to read our book Manufacturing Money, you can buy a hard copy here, or alternatively download a kindle version here.

    Comments are always welcome.

    Have an Awesome Day!

    Jason

     


    0 comments.

    Annual Benefit of More Than 8 Figures


    Today we hear from Tom Bell – Senior Vice President Manufacturing Asia Pacific, Electrolux

    Are these the kind of results you have been looking for?

    “I have known Jason for nearly 20 years and worked closely with him for the last three years whilst he was at Tom Bell TestimonialElectrolux in Orange.

    Manufacturing in Australia is a tough game and is always on a knife edge. Jason led the Orange team of nearly 600 people to reduce costs, increase customer support, set new records for quality and expand export markets. This was done before and during the GFC! All of this without large scale investment and in an incredibly competitive environment with many players.

    All of these improvements flowed through to the bottom line in a multi-million dollar annual benefit of more than 8 figures!

    If you are a Manufacturer, you need to talk to this guy and hear how he can help you!”

    Tom Bell – Senior Vice President Manufacturing Asia Pacific, Electrolux

    If you or someone you know wants these kinds of results in your business call me on 0488 337 666 for a chat about how we can help.

    If you would like to read more about real life results that can be achieved in your business, click here

    I look forward to speaking with you.

    Jason


    0 comments.

    Trolling on LinkedIn and avoiding a fundamental truth


    The NSW Government recently announced that is would be buying its next generation of trains from a consortium that will be building the trains in Korea. This is a $2.3Bn deal so it is a significant investment.

    Sadly the trains will not be built in Australia.

    The government stated that by making the decision that they did saved taxpayers 25% of the purchase cost.

    There was the usual outrage from groups who wanted the trains built here. The talk is of jobs for locals, recirculating money in the economy, building local skills, and many others. All of these things have merit……………until you have to pay for it.

    The usual industry ‘advocates’, university professors, and plenty of consultants also chipped in with how stupid, short sighted, ill informed, etc, the government was being. The lamentations of ‘Why oh, why don’t they see the light’ become quite humorous.

    I pop into these groups now and then and for my own amusement whilst I am having a break, I try and talk some business fundamentals about the situation. I have been abused, ridiculed, and even blocked. I find all of that hilarious.

    The question isn’t ‘Why is the government so stupid’ it really should be… ‘Why did a local bid require a cost premium of 25%?’

    I have not received one answer to this. Not one!!

    I also as…

    “What would have to change so that the local cost was equal to the imported cost?’

    Again, no answer.

    The last fleet of trains in NSW was built locally. For many reasons (there is plenty of blame to go around to all participants) they were late, over budget, and had many build issues.

    So not only are we expensive, but we are also not very good!!

    What government is going to go to taxpayers and say that they should pay more taxes to subsidise a local industry that is not very good at what it does. (I am not so naive to accept that other government’s work on a ‘level playing field’, they don’t)

    The answer is ‘A government with a death wish!’

    I wanted the trains built in Australia.

    I want the trains built in Australia because we offered the best value solution for the money and were a safe reliable supplier.

    We are not, and we failed to deliver last time.

    Sourcing elsewhere is the inevitable outcome of our failure to deliver value.

    Industry has to look in the mirror and address its shortcomings and work on lifting its capability in all areas, especially management.

    You have to do this in your business; I have to do it in mine. It is not always a pretty process; it is unavoidable if you want to win.

    Comments are welcome

    Jason


    3 comments.

    Freed up $150,000 in Cash Flow


    Today we hear from Chris Kath – Superbee Honey Factory, Forbes NSW

    Are these the kind of results you have been looking for?

     

    “I’ve been working with Jason Furness for several months now, through his Inner Circle Program, and I’ve learnt a lot in that time. Jason’s experience is in the real world. He has got a lot to teach you.

    Some of the things that we’ve taken from Jason’s teaching here at Superbee have been reducing our finished goods inventory by over 50 per cent, which has freed up something like $150 000 of cashflow. As part of that, it’s allowed us to improve our quality and improve our consistency of supply to our customers, which has improved our relationship with them and repeat business.

    We’ve cut our lead times down from four weeks to down to one week, which again has improved our business enormously. Jason’s shown us some simple tools to use and a visual scoreboard so all of our staff and all of our people can see what’s going on and work with that process. It’s led to a happier staff, it’s led to easier production scheduling and it’s greatly improved our DIFOT over time.

    I couldn’t recommend Jason highly enough. If you’re in manufacturing, you have to speak with this guy.”

    Chris Kath – Superbee Honey Factory, Forbes NSW

    If you or someone you know wants these kinds of results in your business call me on 0488 337 666 for a chat about how we can help.

    If you would like to read more about real life results that can be achieved in your business, click here

    I look forward to speaking with you.

    Jason


    0 comments.

    Housing is inexorable: 3.5 million people can’t be wrong!


    Recently we moved house, and looking past the backyard of our acreage we have a lovely outlook over some lakes. Further into in the distance we can see a housing estate under construction.

    In the few weeks we have been there I have seen the land being surveyed, the roads roughed out, the earthworks beginning, and now the services appear to have commenced installation.

    Off to the right you can see the already completed sections of the estate, which 3 years ago, was still farmland.

    This estate is creeping across the hillside and people are moving into their newly built homes each week.

    We work with a number of companies in the housing and construction sector and most are growing very well.

    What drives housing?

    There are plenty of drivers in terms of economic settings, however there is one underpinning issue that I think is important for all of us to consider, and that is population growth.

    Over the next 10 years Australia will grow by 14% according to the ABS. This equates to approximately 3.5 million extra people who will need a roof over their heads, roads to drive on, schools to attend or send their kids to, etc, etc.

    If our population is growing, the economy has to respond to provide the facilities.

    If you are in building and construction, this most basic statistic should give you confidence, if you are not then what could you do to create a customer in this sector.

    Comments are welcome

    Jason


    2 comments.

    $147 Marketing Campaign Generates $284,449 In Sales


    Today we hear from Ian (Bart) Bartholomaeus – CEO, Midpro Engineering, Forbes NSW

    Are these the kind of results you have been looking for?

    This video was then:

    this is now:

    $147 Marketing Campaign Generates $284,449 In Sales

    “I spent $147 on a Marketing Campaign Jason developed for me and it has generated $284,449 in extra sales in just 6 weeks. I no longer have any worries about not having enough work!

    Jason is now also helping me change how I run my factory so that we can continue to produce all this extra work without me having to slave away working the long hours I used to do.

    Business Coaching Works!”

    Ian (Bart) Bartholomaeus – CEO, Midpro Engineering, Forbes NSW

    If you or someone you know wants these kinds of results in your business call me on 0488 337 666 for a chat about how we can help.

    If you would like to read more about real life results that can be achieved in your business, click here

    I look forward to speaking with you.

    Jason


    0 comments.

    3D Printing, Beer, and the Death of Everything!


    I took my 14 year old son along to a recent event promoting a program to encourage more students to study STEM (Science Technology, Engineering, Maths) and to link industry into schools to aid in that promotion. This is something he had told me he is interested in (a very father and son moment for me).

    The event, called ‘Bots and Beers’, was held at a local boutique brewery. It featured a number of 3D printers and some virtual reality equipment for people to get hands on with, whilst sampling the local ales.

    On the night they had a promotional offer on small 3D printers….so being an engineer at heart I subsequently walked out the door with a small 3D printer under my arm.

    Learning to drive the printer and having all of my kids make things over the last few weeks has allowed me to spend some quality time thinking about the impact of this technology on industry.

    It is the design quality, not the machine that drives the success or failure.

    As we print designs we download, and make a few ourselves the printer is just the delivery vehicle for the design. A lousy design results in a lousy product. The skill of the designer is critical

    He who controls the raw material pricing controls the industry.

    Similar to the injection moulding industry the machinery keeps dropping in price, the commercial viability is driven by the raw material pricing, availability, and capability. The large raw material produces will control the roll out.

    3D printing will not be the death of existing technology

    You could 3D print a bridge, but why would you? The cost base of many products such as steel beams, panels, wood, etc is such that 3D printing would have to massively change its current cost base to compete with current methods. Is this possible? Yes, inevitable, No.

    This technology is superb for highly complex, one off items

    Medical prosthetics which are customised for the individual and have incredible complex shapes that CNC equipment cannot produce are a field where 3D printing is absolutely superb!

    Food for thought.

    Comments are welcome.

    Regards

    Jason


    0 comments.

    Are You A Black Belt?


    Extracted from my book “Manufacturing Money” and published in the MHD Supply Chain Slutions magazine September/October 2016 is the following article “Are You A Black Belt?”.

    A black belt is a white belt who never quit!

    A black belt is a white belt who never quit In martial arts, the level of skill of the practitioner was recognised by the use of different coloured belts to be worn with the uniform. The belt colours did not recognise the time spent in the study and practice of the art, rather, it represented the skill of the practitioner. In Judo, the darker colours of green, blue, brown then black were meant show how ‘dirty’ / much work you put into the art to build and lock-in perfect habits.

    No matter who you were, or what skills you felt you already had, you began at the white belt level. Progression was not dictated by time served, but rather, by the skills achieved. The training and practice regimen was different for the students depending upon what belt they had achieved. The more advanced students tended to train longer, with more intensity, and learnt more advanced skills. Each belt laid the foundation for the skills to be learnt at the next level.

    Students developed and, as their bodies became more conditioned and their basic skills developed, they could understand what was required to move to the next level.

    This white belt to black belt progression is a ladder. For the student it sets up a clear framework to allow the student to focus on the appropriate skills and actions for their level, knowing that if they develop then more skilful and advanced techniques will await them as they move up the ‘ladder’.

    In fact, the first lesson a White Belt learns in Judo is how to fall without being hurt. Falling is not failure, it is inevitable and invaluable part of the learning experience at all levels of progression. In Tae Kwon Do a White Belt spends a huge amount of time learning how to stand. The basic stances teach balance and provide a foundation for everything to follow.

    In most endeavours in life there is always someone who wants to jump from beginner to the elite level without following all of the steps. In martial arts it is rare for someone to actually attempt this and succeed. Usually they injure themselves as neither their body, nor their technique can stand up to the strain of the advanced moves. Nor do they have the experience that comes from thousands of repetitions of exercises (the secret of 10,000 hours of practice is well reported for creating world class performance) or many, many hours of sparring. These people usually burn out, have chronic injuries, become frustrated, and quit.

    Progression up the ladder can be rapid, however, all the steps must be followed. This isn’t a game of ‘time served’ it is a game of ‘capability demonstrated’. Rapid progress is possible if you are willing to do the work.

    It’s also not about working hard for the sake of working hard.

    Hard work is part of the solution, make no mistake.

    The right hard work being done, at the right time, and lots of it is what drives a rapid progression up the ladder.

    White Belt – Negative Cash Flow2016-09-spread-are-you-a-black-belt-tie-the-rope-to-improved-productivity

    If your return on investment is negative, you’re losing money, which means what you are really in is a fight for life. Your day is an all-consuming battle, hoping something changes that will give you a chance to breathe. You almost dread every phone call in case it’s from the bank (or anyone else who is owed money).

    The owner is totally focused on trying to make sure that if they did have to shut down that they could keep their house. If employees know what’s going on, they are terrified of losing their jobs as that may well mean that they are at risk of losing the roof over their heads also.

    None of this is fun for anyone involved. It is high stress, energy sapping and terrible for relationships both within the workplace and at home.

    This is the realm of the plant closure, the corporate reorganisation, the ’right sizing’ and the ’strategic review’. Heads will be rolling and morale is usually non-existent.

    Yellow Belt – Zero to 2%

    At zero to two percent it gets slightly better – but here we are still hand-to-mouth and are really focused on how to survive the week. Can I pay the wages this week? Will I be able to pay the creditors at the end of the month? Your cash flow is incredibly tight, you rely on customers paying on time, or else you are down to the bank for an overdraft extension. Your bank will become tired of this behaviour and your credit rating can suffer.

    Performance at this level is far too common, amongst both small business and large. Business ownership gets a bad name because so many people who are running or owning their ownbusiness are only achieving these sorts of returns for the massive workload and pressure involved.

    Green Belt – 2% to 5%

    At two to five per cent, you’ve got some money coming in. The business has some value and quite possibly a future. The business model seems to be working. You still need customers
    (especially large ones) to pay on time. Money has been invested into assets. These assets are probably not running at full capacity. You really need to grow. Here it’s about sell, deliver, repeat, sell, deliver, repeat … and keep growing. Managers and business owners are probably still working long hours and everyone is thinking: “How do I squeeze the last little bit out of my bank account and my overdraft.” It is cookie-cutter stuff.

    Your returns, while real, are probably below the cost of capital, so it is not going to buy you a yacht or private jet, however, you can keep going around again…… for a while.

    Blue Belt – 5% to 15%

    Between five and 15 per cent is where you start reaping a harvest from all your labours. If you’re smart, you make sure you pay down all your  debt and start to build a nest egg for whatever it is you want to do.

    This is the absolute bare minimum you must tolerate as a return on investment. Here’s why. If you go into any of the major banks and say: “Look, I’m just going to sell everything up and I’m going to put it all in a term deposit with you, fly off to my favourite holiday resort in the Bahamas, Cairns, or Greece, and sip Pina Coladas on the beach,” what will you get? For all that extra stress of sipping Pina Coladas your bank will give you somewhere between four-and-a-half and five-and-a-half per cent interest (in Australia, at time of writing) on your investment.

    Now, I know we all love being in manufacturing because it’s so much fun. We love turning up every day to deal with people issues, fix breakdowns, chase suppliers and customers (and get chased by customers). It’s so much fun, we all do it for love (yes, I am typing this with my tongue firmly planted in my cheek).

    If you agree with my ROI premise, then hopefully you agree you’re in business not just for love, but you also want a much bigger ROI than you’re going to get out of just putting that money in the bank. For those of you who are looking to borrow money to expand, or to win investmentfunding from other divisions in your company, this is essential. If your ROI is not at the very least matching up with what your money can earn sitting in the bank and doing nothing, you will need to change the situation very, very quickly.

    At 5 to 15 per cent, you’re harvesting cash and starting to build a nest egg. I wouldn’t say you’re a very plump, well-fed cash cow just yet, but at the very least you’re generating cash. At this level the business is still vulnerable to shocks. Your customers can easily find someone else to supply them. A change in pricing can hurt you. In the early stages of cash harvesting, you really haven’t got anything in reserve.

    You are, however, generating enough cash to make it worth your while and can keep going, probably indefinitely.

    Red Belt 15% to 30%

    At 15% to 30% return on investment, you are finally beginning to experience the luxury of having choices. You have hopefully accumulated enough of a nest egg so that you can ride out
    several downturns in the market. This level of ROI allows you to cope with the inevitable low periods of the economic cycle.

    You will ask or tell yourself: Do I want to expand? Do I want to sell? Do I actually just want to cut back to three days a week and make sure it all keeps ticking over because I’ve built a team that can run it all? I’ll go play golf (or whatever it is I want to do), because I am the owner.

    If you are the executive employee in this story, then you are almost certainly in line for promotions and expanded roles. Even if the company did get sold, the new owners are going to think very carefully before making you change things away from what you believe is appropriate. You can expect more freedom inyour decision making.

    Black Belt 30%+

    A business that is making returns of over 30% (and yes they do exist, I work with a number of them) is a business that is truly in charge of its own financial destiny.

    This business is ripe to fully implement the transformational projects to completelyregenerate its activities to remain the market leader it has almost certainly become.

    After a few years of performance at this level the owner usually begins to think of starting other enterprises using the accumulated returns, spending more time on other projects, or transitioning the management team from one group to the next or intergenerational handover in family owned businesses.

    Businesses achieving this level of return are often happy with the current situation (why wouldn’t you be). The danger here is the risk of complacency and personnel turnover gradually winding back performance. The opportunity is to really go and make something that is truly unique and game-changing in the industry.

    So, how do we achieve a superior ROI?

    Designing your unique competitive advantage

    Earlier I wrote: “Commerce has always been, and will always be about the creation and exchange of value between two parties.”

    There are three core elements that make up this concept.

    Client problem
    Our highest purpose in this commercial exchange is to give the individual client what THEY value in a commercially sensible way for US. Each client is unique. They all have their own peculiarities and individual desires. This applies not only to supplying value to individual consumers (called Business to Consumer or B2C), but also in the Business to Business (B2B) environment. Most of us know that individual companies have their own unique needs and idiosyncrasies.

    What creates needs for these individual clients is that they have problems. Solving these problems is how we create value. Often they’ll tell us those problems in great detail, particularly when we’re part of it, but in plenty of situations they won’t know the problems they’ve got. They’ll know how they feel about it but they won’t really know what the causeis. That happens as well. For example, no one knew they needed a mobile phone in Australia until 1987 when the first commercial service began. Up until that time everyone found a way to communicate and accepted the limitations of ordinary phone systems. They did, however, desire a way of communicating without being tied to a landline.

    Industry problem
    When businesses within an industry cause a large number of their clients the same style of problem, what we have is an industry problem. An industry problem is something that is experienced by clients when dealing with the whole sector. It is what you and all of your competitors are doing that hurts your clients. You are not deliberately (hopefully), setting out to do this, however, you have chosen to run a business model in the industry that puts your client’s needs at a lower priority than some
    need of your own.

    For example, if you ring up and try to have an electrician, plumber, or carpenter come to your house to do some work and try to arrange a specific time for this, you may run into an industry problem. The stereotype of the industry is that you can’t get them to turn up to quote and you can’t confirm an appointment time. In fact, they often won’t turnup at all, and if they do they’ll tromp muddy boots through the front of the house. Not all electricians, plumbers, carpenters are like this but enough are so that this is recognised as an example of how the industry as a whole hurts its clients.

    The client has to take time off from work, for much longer than the actual job takes, live with the uncertainty that you won’t turn up on time, if at all, and then try and catch up with all of the work and disruption that being out of the office for half a day or longer has caused. If the job requires parts that are not immediately available, the whole process has to be repeated
    at least once more.

    Business process
    The third circle represents you. Your business processes. This is what you actually have control over. The circle includes all of the activities inside your business. This is us! Here is where
    we focus our change efforts.

    Interaction of business process with industry and client problems

    What’s of most interest to you (and what you should obsess about understanding) is how your business processes interact with the industry problems and problems of individual clients.

    2016-09-spread-are-you-a-black-belt-tie-the-rope-to-improved-productivity2

    Growth

    Now, where the business processes overlap with an industry problem, you are going to get growth because you are solving a problem that everyone experiences. If you can turn up on time and be a reliable tradesperson who cleans up after the job, you will get more business – and consequently, growth – because so many of your competitors don’t. This is still a powerful business model today where growth is driven by your reputation.

    Opportunity
    Where there’s overlap between a client problem and an industry problem, there’s clearly an opportunity in being deliberately different in the way you work with those people. You can take
    advantage of that opportunity.

    Loyalty
    Where your business process solves the unique needs of a particular company, then you are highly likely to receive increased loyalty and repeat business. This is very valuable not
    just for their business, but for the referrals and recommendations it can generate for your business in the future.

    Transformation
    The overlap point of three circles is where you can achieve real and sustainable transformation. If you are solving someone’s individual problems, if you have covered all the industry
    issues, and your business process has nailed it, then that’s where you transform your business very, very rapidly.

    For example, your clients value short lead time to market, the industry problem is long lead time to market, and you can fix this by adjusting your business process; boom, you’re
    off and running.

    If the problem in your industry is high price and low quality, and you’re able to solve that problem when no one else in the industry can – boom!

    The whole concept of patents and the whole commercial value of patents is that you’re solving some issue in a way that excludes and separates you from the rest of your industry.
    There’s a reason we pay more money for things that someone’s invented and patented. We do not have an alternative. There is no competitive dynamic in there until we invent an alternative. In the meantime, prices can be higher.

    We exist as a viable commercial entity to create value for customers and our stakeholders. We do that by having as many of our business processes as possible overlapping (solving) both the client problems and the industry problems. The business processes that add value in this diagram are those processes that intersect one or both of the other circles.

    If your business process doesn’t intersect with either circle, then it doesn’t add value. The remainder of our business process which does not overlap the other areas contains activities that do not relate to supporting a customer.

    So why are you doing it?

    Some of these activities will be because you have to respond to legal, financial and compliance issues. Customers don’t want to pay for your compliance work, but it has to get done. Compliance work is actually a gold mine of opportunities to improve and move more of  your business process into the intersection of the circles as it can often be rapidly systemised and automated.

    The rest of it is plain old-fashioned waste and should be ruthlessly eliminated. We must minimise the size of the Process circle that does not intersect with the Client Problem and Industry Problem.

    Hope you enjoyed this article. You can download a pdf of the magazine article here.

    We welcome any comments below.

    Have an Awesome Day

    Jason


    0 comments.

    A Rapid Change in Delivery Performance had our sales team asking What Had Happened


    Today we hear from Duncan Greeney – General Manager, TYCO Water, Currumbin QLD

    Are these the kind of results you have been looking for?

    Duncan Greeney Tyco  Testimonial“A year ago I took over the General Manager’s role for the TYCO Water fittings, valve foundry and manufacturing business unit, with Sales of over $45m and more than 180 people. For many years our supply performance to our distribution centres and customers had been poor and none of the previous strategies attempted had made any significant improvements for our end customers. My own team had reached the point where they believed that reducing our overdue orders beyond a certain point was impossible.

    Within a couple of months of working with Jason as part of his Executive Mentoring program we had implemented some very simple strategies that reduced our overdue orders down to half what people thought was possible. This made such a rapid change in our delivery performance that our sales division was asking what had happened!

    I then used Jason as a trainer with my Lead Team to help us define and build the management system needed so that these gains would continue to occur, the improved performance levels would become normal, and to lock these gains in for the future. Introducing the changes needed with my team is now much easier as the alignment this training created has been tremendous. We are continuing to work with Jason to drop our lead times, reduce our work in progress, and boost our cash flow.

    Jason is a straight shooter and draws upon his wealth of experience to help you cut through the noise and find what is holding your business back. The practical, real world based approach Jason uses really works!”

    Duncan Greeney – General Manager, TYCO Water, Currumbin QLD

    If you or someone you know wants these kinds of results in your business call me on 0488 337 666 for a chat about how we can help.

    If you would like to read more about real life results that can be achieved in your business, click here

    I look forward to speaking with you.

    Jason


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