Tuesday, June 24, 2008

Improving What?

If kaizen is continuous improvement, what are you going to improve? I believe improvement has two sides that describe the same objective. There has been much written about eliminating waste (seven, eight or more forms depending who you read - more about this in the future); I prefer to see the other side - adding value. I believe this is the "glass is half full" view and also makes you seriously consider what is value. Just like answering a multiple choice question, you can pick the best answer or eliminate all the wrong answers. If you can define value properly, you are way ahead of the competition and picking the best answer.

Value should be defined by the person(s) you are trying to serve. Four easy measures of value are Safety, Quality, Delivery and Cost. To be honest, when I bought my first car; a 1970 Ford Maverick, cost was the only factor I considered. Today's consumers are much more savvy and will look elsewhere if you fail on any one of these four basic measures. Voice of the Customer is one format to work on properly defining value. Marketing research has been on to this concept for years. It goes wrong when those listening apply their own bias and don't really hear what the customer is saying. It is easy to get off track because we can believe we know what is best for our customers.

Companies and individuals who define value well have an edge over those who do not. Staying focused on adding value and watching for value shifts; usually in the form of raising the bar, is the next level of accomplishment.

Choose the right customer to help you define value and your life will be changed.

No comments: