Latest Articles
- 10 Tips for Creating a Data Goldmine
I have been working with many clients who have their information in a database but are unable to get the information they want or know where to find it. Usually the culprit is a series of issues that come together to create the perfect storm of inefficiency. The tips below will help you to prevent this storm and maximize the information in your database to increase productivity and profits.
- How to Make More Money in 2012 with Data Driven Decisions
I have mentioned in many of my articles about metrics. Things we use to measure success and how far you are from reaching your goals. Data is much more than that – it is a valuable tool to make solid business decisions. It also helps you to save as well as make money. Below are some of the metrics you can use to help grow your bottom line in 2012.
- Why Effective Reporting Makes You Money
Many organizations today rely heavily on their technology to get things done. This is something that will become increasingly important as we move into the future. Those who have learned to leverage the information they have can effectively market, close sales, produce their products or services quicker and save money on maintaining those customers. One way to achieve this is through effective reporting.
- Top 10 Reasons Why You Need a Bookkeeping System
As technology progresses it is becoming increasingly important for companies and non-profits to track their information. In a previous article I discussed how to maximize your customer relationship management software. This month I am going to talk about your bookkeeping system. These two areas tend to be neglected by a new business or existing businesses using an effective system that is too difficult to maintain. Either scenario will cost you money, time and sales. Below are the top 10 reasons why you should use a bookkeeping system.
- 7 Ways to Keep Your Database from Becoming a Digital Clothes Hanger
As part of the new reality, organizations are doing more with less. This translates into reduced staff, resources and in some cases office space. This has created the necessity to examine how organizations can use technology to be more efficient. One way is to purchase Customer Relationship Management (CRM) Software. Doing a thorough research process and testing prior to buying your system. Once purchased, I encourage you to take the necessary steps to avoid it becoming a digital clothes hanger – aka an unused treadmill. Here are some tips on how to avoid this dilemma for yourself.
Where Did Toyota Go Wrong?
Unless you are under a rock you have been hearing about the Toyota recall. This disturbed me because they have been the leader in quality and what a Lean enterprise looks like. So I did some research to see what went wrong.
As I have been learning all of the wonderful tools and innovation that Toyota brought to manufacturing I am astounded to say the least. And up until now their quality was unsurpassed. What happened? I was reading an article from the Harvard Business Review by Sean Silverthorne on this very subject. Apparently, a significant contributor to this accelerator problem was Toyota leadership abandoned their quality driven system for increased market share. This wonderful thing called capitalism comes with an underlying price – manufacturer responsibility to the consumer’s safety. Toyota let themselves be lured by increasing market share instead of their customer first ideals. I wonder if the leadership seriously considering the long term consequences of this direction.
“The flush of catching up to Ford and General Motors, coupled with a boom in demand, led Toyota's leaders to put sales growth above quality. Senior leaders became focused on becoming first in sales with a 15% share of global sales. This meant that new products had to be introduced more quickly, new plants had to be opened more rapidly, and supply networks had to be expanded more aggressively. We're now seeing the consequences of those decisions.” - Learning from Toyota's Stumble by Steven Spear
Another automaker that lost its credibility was Audi. “Volkswagen AG’s Audi luxury brand spent 15 years rebuilding U.S. sales after sudden-acceleration incidents in the 1980s almost wiped out demand, a possible sign of the difficult times Toyota Motor Corp. faces. Audi’s U.S. deliveries plunged 83 percent by 1991 from their peak in 1985 following recalls of the German automaker’s 5000 sedan. A class-action lawsuit in 1987 by Audi owners seeking compensation is still being fought.” Audi 1980s Scare May Mean Lost Generation for Toyota by Andreas Cremer and Tom Lavell.
Toyota was the industry example of how to run a manufacturing business at optimum performance. When they upheld Lean principles of the customer first in on all levels of their processes it was reflected in the quality of their product. Not just in production, but design and marketing. This Lean philosophy was translated into profit, brand loyalty and an impeccable reputation. They were truly a lean enterprise. I fear that they have now become just another automaker. Toyota is reexamining what made them great. However, it will still take years to recover from the brand damage now done.
Toyota is a clear example of what not to do when you have a successful business model. All companies can be what Toyota was and hopefully will become again. Before this recall Toyota had 15% of the global market. Amazing. On a local level, think of what is would be like to increase your market share just by doing things Lean. If you were able to set up best practices, reduce or eliminate mistakes, full utilization of staff, etc. how would that help you become an industry leader? The question to ask yourself is am I the Toyota of yesterday or the Toyota of today? This applies for service business too. Which one are you?
Comments:
Shima, I hear you. Unfortunately this is a belief that has been fostered by what I call the misuse of Lean in an organization. Lean’s philosophy includes the development of its people and to empower them to make decisions and be a valued member of the team. A properly executed Lean initiative should improve moral and the quality of the product not the atmosphere of fear and resentment. Many organizations whose goal was to downsize did it behind the guise of Lean. That is not the goal of being Lean. It is creating a quality product that the customer wants by continually developing your workforce and remain an industry leader. Here is an excerpt form Wikipedia “The 14 Principles of the Toyota Way is Toyota's management philosophy as described by external observers of Toyota. The main ideas are to base management decisions on a "philosophical sense of purpose", to think long term, to have a process for solving problems, to add value to the organization by developing its people, and to recognize that continuously solving root problems drives organizational learning.” http://en.wikipedia.org/wiki/The_Toyota_Way
A lean initiative done with this in mind should produce increased cash flow, reduced costs, and a competitive and increased employee moral. I invite you to check out the 14 principles for yourself that way you know which organizations are walk the walk or giving lip service.
Thanks for the great input.
The word "Lean" troubles me. Spending close to 18 years in home care and working for top leaders in this industry. You cannot provide seamless quality and continuity of excellence when creating efficiency that puts the employee under tremendous pressure either to produce or to operate from a platform of fear based on downsizing. Humanity has left the market place in many large corporations and everything is about the bottom line. What industry leaders fail to realize is that when employees feel appreciated and their opinions valued morale is at its peak. Loyalty towards the company based on these core issues, automatically results in increased productivity and better quality. As a Vice President of Operations and a Vice President of Business Development it was the staff that would make or break the corporation's ability to achieve greatness in the playing field. May I add...who is answering the phones at Toyota and ensuring that buyers, new and old are left with a sense of well being and that it is still the best thing in the world to purchase a Toyota?