From Value To Profit

One of the commonly bandied about phrases is 'added value'. This has led to a number of analyses to be done for businesses when considering how they can make improvements. If the improvement actually delivers a real benefit then it can be considered to add value, for example:

If you save someone's time on doing something, but don't get them to do something else that makes profit then you haven't realised a benefit - you are still paying them the same.

On the flip side if you reduce shift working / overtime thanks to an improvement then that is a real saving.

If the improvement allows you to do something strategic, but that doesn't ultimately make your business a better place to work or create more profit then you haven't made an improvement.

I hope you can see that once you have identified an improvement and worked out its potential to benefit the business then you need to find a way to use this extra capacity / capacity to increase the profits of your business. It is too easy to slide back...

Smartspeed Consulting Limited
Taking the frustration out of on time delivery.