How Lean is your business

Have you ever heard the term?

Let’s break it up and look at the word lean.

Oxfords definition is – To slope in one direction, or to move the top part of the body in a particular direction.

Now out that with the word business, The activity of buying and selling goods and services.

I don’t know about you but that sounds like a pretty awkward term when put together. I say it all the time, we really need to come up with more practical and self-explanatory terms in business and finance. Then maybe more people would not shy away from it. But when you hear the word Lean Business you can understand why people are left scratching their heads!

So, what is it then? Its about carrying out your business in the most efficient way possible. It maximises value while minimizing waste. It is the implementation of procedures to ensure staff members time is used in the most effective way possible, while minimising waste and delivering its product or services at an optimized value to it customers/clients.

Now you maybe already thinking – ok, so you need to cut costs but do the same job. No. Lean is more about the way you think about the process of what you do. If you start with your businesses why and purpose then look into the process, the procedures. You need to assess the value stream of your business and make sure that each step along the process is valuable, capable, and with minimal waste.

The “waste” of lean business refers to how you can make each process more efficient. There is no point having 1 office person walk to the mail room three times a day, or have a manager go from department to department only to end up right back where he started. This is when a map cane come in handy. Having your employees made their day can give you real insight into ways that you can minimalise the waste.

Looking at your business from a Lean point of view changes the focus from optimizing sperate departments, and assets to optimising the flow of the product or service which then in turn optimisers the profit of the business.

So next time you are sitting in the office or you are in the warehouse or whatever your business is, take a minute to stop and have a look at the process and procedures around you and start taking notes! I think you will be surprised at what you see and how much you can improve.