New Resource for Small Businesses

Just a quick post announcing there’s a short presentation* available now for any small or micro business owners/executives asking:

1. Why should my company be concerned with process?
2. How should we develop processes for our business?

*A version of this can also be presented to your organization’s leadership upon request.

Comments, questions, and feedback welcomed here!

Lean Services Marketing

Just a quick post here for small businesses in B-to-B services.  Regardless of your knowledge of (or initial interest in) Lean, you can use some key questions to tighten up your service delivery. Why is this important? On-target marketing and delivery of services translates to less costs, increased revenue via more focus on the customer, and more fulfilled employees.  That’s what I’ll help you with here.

First, a brief intro to the concept of waste.  Waste is defined as “any activity that uses resources, but creates no value for the customer” by Natalie J. Sayer and Bruce Williams* in Lean for Dummies.  There are 7 ways that waste manifests in manufacturing companies: transportation, waiting, overproduction, defects, inventory, movement, and extra processing.  Here, we’ll just look at preventing the types of waste that relate to marketing and delivering  services, primarily overproduction, extra processing, and inventory.

To deliver and market B-to-B services efficiently, the small business owner should ask the following questions to reduce waste:

1. Am I producing more (volume) or more options than my clients want? (Even at the proposal stage.)

2. Am I producing deliverables sooner than they need them?

3. What quality levels are required by the clients/customers?

4. What quantity of deliverables/materials do they require? 

5. What materials/deliverables can be re-purposed into something that clients value?

6. Is there anything that needs packaging/promoting to create value in the clients’ minds? 

With the answers to these questions, you can begin to plan with greater efficiency and make better use of your time and resources while ensuring you are meeting client needs.   That, after all, is the benefit and goal of eliminating waste.   

 

*Bruce spoke last month at an ABPMP-Phoenix event.  This link contains his bio and information about Business Transformation Through IT, co-sponsored by ASU’s WP Carey School of Business’ MSIM Department.  To learn more about our local chapter of the Association for Business Process Management Professionals, visit our website.

Price Comparison Power to the People

If you're a retail operation selling barcoded goods, there's a new tool in town that can make or break a sale. It's a phone application that allows consumers to get more information about a product by scanning its barcode on-site--and shows if it's available cheaper elsewhere. (See NPR's coverage for more information.)

For those who buy purely on price--and those who aim to be the low-cost leader--this is a match made in heaven, er, airwaves. For the rest of the retailers out there, your 2009 marketing strategy should clearly address a response for the value-based buyers--those who are not as concerned with finding the best price. What does your store offer that means something to consumers and would be worth paying more for? What can you do to increase value? To be competitive, this is the kind of thinking you'll need to do . . . unless you want to offer price-matching (risky) or are structured such that you can afford (and want!) to compete on price alone.

The Rabbit Hole

There's an article worth noting in Jacksonville's Business Journal by Ray Attiyah. His premise is that managers should not chase more than one "rabbit" at a time and he offers a very clear analysis based on experience of why organizations lose focus. I like that he draws to the surface a substantial list of contributing factors but wish he offered a clear-cut systematic plan to avoid chasing two rabbits—or even chasing one down its hole, only to disappear. So, here is the systematic plan that I'd like to offer to small business owners and executives who feel overwhelmed by frequent changes in direction and its compounding problems:

Step 1: Be willing to look squarely at the state of affairs. It takes a tremendous amount of courage to admit errors, bad decisions, barriers to success, market challenges, and customer complaints. If you can silence the ego long enough to examine the environment without blame or judgement, you can overcome any obstacles.

Step 2: Identify root causes (as hard as they may be to admit), again in a way that rises above finger-pointing and blame-laying. However, do not shy away from crucial conversations. Be honest with yourself and others.

Step 3: Make gradual steps toward improvement by eliminating root causes. Enlist support where you need it and focus on what contributing factors must be minimized to foment change.

Sometimes this all of this is easier with the help of an outside, objective observer and facilitator, particularly in organizations rife with political battles. Scary as it may seem, the rewards of these steps are well worth it for those who truly want to lead a successful company.

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Visit my site for upcoming events and additional resources: www.tracydiziere.com/learn