Incline Insights, LLC - https://lnkd.in/eWPJXmt
Great, now we’re ready to make process improvements – wrong.
Many organizations, once they complete a value stream analysis of their most significant sales revenue generator, think they are ready to begin making process improvements. Well, that’s not really true. Before deploying expensive process-improvement-resources the executive leadership team should first rationalize which processes they should be operating in the first place. It could be that you are operating many processes that are causing you to do nothing more than incur excessive fixed costs, to carry unnecessary long-term and short-term-assets, and to have unsatisfactory customer service levels. Additionally, more than likely none of your functional processes will appear on a value stream map because none of what they do links directly to what your customers and consumers value. So, before embarking on process improvements you might want to consider completing something called a distinctive core competence analysis.
A distinctive core competence analysis identifies the components of a specific value-add-process that a business performs a lot better than their competition does on something their customers and or consumers care about. Those things the customers and / or consumers care about are called value drivers. So, this analysis helps you identify what, if anything, you do a lot better than your competition on the value drivers. If a business performs a lot better on something the customers and / or consumers care about they should be able to: (1) increase price; (2) increase sales volume (if they and their suppliers have the capacity to do so); (3) or both.
So, why don’t organizations complete a thorough assessment of their value-add-processes to determine if they possess a distinctive core competence? What business wouldn’t like to increase their price, to increase their sales volume (if they and their suppliers have the capacity to do so), or both? There are probably three primary reasons why an executive leadership team would not complete a distinctive core competence analysis: (1) Lack Motivation: they don’t want to do it; (2) Lack Knowledge: they know what it is, but they don’t know how to do it: (3) or both.
If, you are interested in understanding what it takes to actually complete a distinctive core competence assessment on your most significant revenue generating value stream, and / or on all of your service functions, contact us at Incline Insights, LLC (https://lnkd.in/eT6zJHD). We possess deep experience on helping multiple business units and functions complete such analyses. We also are experienced at helping clients develop and implement plans to act on the outputs of the analysis. There are very few consulting firms that know how to help their clients complete and then act on the outputs of a distinctive core competence analysis – we do.
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