One of the things that a company can control in any market is operational excellence by
removing waste in a system,â notes Jeff Booth, co-founder and CEO of BuildDirect. In doing so, Booth has dramatically sped up the time it takes to get a new vendor up on his building materials website.
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Makers often focus on the shiny objectâthe product theyâre buildingâand forget about the rest of the journey until theyâre almost ready to deliver it to the customer. But customers see it all, experience it all. Theyâre the ones taking the journey, step-by-step. And they can easily stumble and fall when a step is missing or misaligned.
⢠Reduce by 80% the time it takes the top team to manage the business (operational activities)
⢠Refocus the senior team on market-facing activities
⢠Realign everyone else (onto the same page) to drive execution and results.
Because of these needed transitions, itâs often best to have some of the original functional leaders head business units â maybe head up expansion to a new country or lead the launch of a product line â so they can maintain direct operational control.
Owners like Gary choose to spend money every day to grow their businesses. However, sometimes they are actually spending their hard-earned money to cover management-influenced waste (read that again).
Paul did a lot more at Alcoa than use powerful words. He and fellow company leaders dismissed managers who didnât turn knowledge about process improvements into action or, worse yet, covered up safety problems. As business author David Burkus argues, the genius of zeroing in on safety is âyou canât improve safety without understanding every step in the processâ understanding each riskâand then eliminating it.â As a result, hundreds of process improvements âmade the plants run more efficiently,â and Paul âgradually changed the systems and the cultureâ so that âexecutives began sharing other data and other ideas more rapidly as well.â Paul was effective not only because of the powerful language he used to fire up employees and focus their attention on the details of Alcoaâs production processes. What Paul didnât say provides an equally important lesson for friction fixers: we canât detect even a whiff of jargon monoxide in his words after reviewing numerous speeches, interviews, and written statements.