So I came up with this word pair yesterday. Its kind of a weird pairing. Lean and capitalism. Capitalism is about making money. Some subscribe to theory that you have to spend money to make it. I agree with this but also am an advocate for lean capitalism.
Just what the heck is that Katie? Here it is in a nutshell: lean capitalism is about making the most of what you have but it means making focused choices WHILE making money. Ask yourself a few questions…
1. Are your assets (equipment facilities etc) performing at their best? Do you understand what your unit costs are to do business and do you use this to price yourself competitively? Do you know how to measure this? If you aren’t then start! How can you make decisions if you don’t measure?
2. Do you have the best people running and maintaining your assets? Do you have the best people planning for your future growth? Do you know how to measure this? If not START! And if your rewards system is too generous…CUT BACK and only give your top talent (employees and suppliers) the EXTRA.
3. Are you benchmarking yourself against the competition? Do you know what your customers employees suppliers and stakeholders think? If not ask!
Long gone are the days when a business is about the boss. A business is about shareholders, the market and the media.Sustained delivery and perception are everything!
Good companies are those that have the right combination of assets, technologies people processes and foresight to win.
But in the end the BEST companies are those who can sustain all of the above during bad times and good times.
That my friends is lean capitalism.