In Lean Thinking, we use the phrase “value-add” and then qualify that term as taken from the “customer’s perspective.” While that might be true, it’s not concrete enough and is actually difficult to understand. So, the question is how to add value? And it’s not even a question of perceived value versus actual value. Value is value.
I am reminded of something my older brother taught me a long time ago. He said simply (I’m paraphrasing):
You will be financially fine if you can make people’s jobs easier or make money for a company or make things cheaper for a company.
He’s right. All those elements add value. I’ve chosen to expand upon what he said and share the items below as practical tips to add value.
I believe what my brother taught me is still right: if you do some of the things below really well, you will likely be always in demand and be financially just fine.
In summary,
- Increase: Revenue, Profit, Growth, Market, Share, Retention, ROA or ROI, Efficiency, Cash Flow, Visibility
- Reduce: Cost, Time/Effort, Complaints, Risk, Turnover, Conflict, Paperwork
- Improve: Productivity, Process, Service, Information, Morale, Image, Reputation, Skills, Quality, Loyalty
- Create: Strategy, System, Process, Business, Product, Service, Brand
Thanks for the inspiration.
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Roy Waterhouse says
Love the post. Our sales team has to deal with this on a daily basis. We are losing simple work to online competitors and it is easy to blame the channel when it is really the customer doesn’t see the extra value we bring.