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How to Deliver 20-30% Productivity Improvement

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How to Deliver 20-30% Productivity Improvement

Susan Clapham shares an article on how to delight your customers and increase productivity. 

Delight your customers and deliver 20-30% productivity improvement year-over-year by focusing on maximizing the value-added work (and minimizing the non-value added work). I was reminded of both benefits recently when I was at the post office purchasing international stamps. In addition to the customer service representative being cheerful and efficient when giving me the global stamps, she gave me an unexpected second stamp, the blue Air Mail Par Avion (pictured above). I asked her if this stamp is needed; I’ve been sending international correspondence for decades and I’ve never used this stamp. She said it’s not needed it’s just an “extra” thing.

Unneeded “extras” cost money. I’ve experienced this in many organizations across the world (Clapham Consulting serves clients with $5M to $100B in sales). The customer defines what is value-added based upon their willingness to pay for “it”. In software, it could be coding a feature that isn’t required. When I was a plant manager of a distribution transformer facility, the non value-added step we did (until the machine broke and we questioned the process) was press the core/coil before we placed it inside the “can” or transformer body. Understanding the voice of the customer (VOC) helps discern what is value-added and what isn’t; this allows a capture of 20-30% in efficiency and quality improvements the can be monetized to show a P&L improvement. I walked away from the post-office thinking about what the USPS could do with the unneeded costs of the blue stamp.

 

Key points include:

  • Unneeded extras
  • Understanding the VOC
  • Maximizing the value-added work

 

Read the full article, Focus on Value Added (& reduce the Non-Value Added), on LinkedIn.