Three forms of Waste that will hurt your business.
All people leaders need to be aware of the below three forms of Waste as it impacts morale, service, profitability, productivity, team performance and, importantly, business growth.
Every business must focus have a focus on process optimisation.
All end-to-end processes must be streamlined, checked for additional steps and documented so that people can follow the one way.
Sadly, in my experience, many smaller organisations suffer from Process Waste and let me explain what it is.
1. Process Waste
Process waste occurs when we have unnecessary steps in any process.
You may find that staff operate differently and that your overall quality of service differs from person to person.
When you have poor process design, you will find that this will trigger the following form of Waste: rework.
2. Rework Waste
Rework is double handling.
All organisations must try to error-proof their operation by automating and streamlining all processes.
Errors and double handling only extend completion times and increases costs.
The aim is to “Do it right the first time” and find out why errors or rework is occurring.
Intentionally try to eliminate this form of waste, and you will find capacity benefits or doing more with less time, effort and cost.
The third form of Waste relates to the quality of leadership.
Poor leadership will lead to Intellectual Waste, which is a concern.
3. Intellectual Waste
Intellectual Waste is when:
• Organisations fail to leverage the skills of their employees
• There is a lack of employee engagement
• Knowledge isn’t shared
• Poor team collaboration
I believe that thousands of organisations still have this form of waste, costing them a fortune.
They may be paying someone $80,000 per year but only getting $60,000 worth of value.
Please reflect on your area, determine if you have these forms of Waste in your business, and reach out if you have any questions.