Written by James Rosenegk and previously published via Kaizen Training Ltd
Have you ever wondered how you could significantly increase your profits* with almost no effort at all? How making the smallest of efficiency changes across your business could add nearly £1/4 million directly to your bottom line in one year?
Often we get caught up in thinking that big results only happen from big change – but that’s where a Kaizen approach is so different. Its foundation is small continuous improvements involving everyone in an organisation and I’m going to share a secret with you that will astound you.
Imagine that from tomorrow every employee in your company was able to save you £1 without any detriment to productivity or your customers. Now imagine that they could do that for you day in, day out for every working day of the next year. Do you realise what those seemingly insignificant sums would add up to? The numbers are incredible:
10 employees = £2250
100 employees = £22500
1000 employees = £225000
And how much would that save you over the next 5 years? No, really, it’s a serious question. Take a moment to work it out now.
And if you could increase effectiveness in your organisation on top of simple efficiencies what would that do for you? Using simple Kaizen or Lean techniques you could quickly realise a return of at least 10 times this. Go on, work this out too!
Now what would that do for you???
One client saved over £20k with a £5 children’s toy. They wanted to reduce the energy consumption in their warehouses and some years ago had installed sensors to turn lights off when certain areas had no people in them; yet it turned out that the constant on and off of the lights was costing more than just leaving them on. To rectify the problem it was going to cost over £20k to rewire the warehouse – and the solution, £5 toy aeroplanes on wire that fly around in circles! The movement kept the lights on, reduced energy consumption and avoided an additional £20k!
Your call to action:
- Think about what you do and how you do what you do. What simple things would save £1 for your company every day through simple efficiencies? Be creative like our client story above!
- Now think about what you could be doing more effectively to save at least £10 every day for your company. Did you know that up to 80% of all processes and activities provide NO customer value add?
- Don’t do this alone. One of the secrets is to get everybody in your company involved – and that means EVERYBODY. Spread this message across your organisation and start to reap the benefits today.
Want more? One of our core skills is to help you implement and use Continuous Improvement tools in a way that involves and engages you and your people. Email us now for some ideas related to your issues or pick up the phone and call us to discuss how we can help you achieve significant breakthroughs in your organisation.
*For non-profit organisations, replace profits with reduced costs