Growth vs Operations
There's an old story about a guy taking a smoke break with his non-smoking colleague.
"How long have you been smoking for?" the colleague asks.
"Thirty years," says the smoker.
"Thirty years!" marvels the co-worker. "That costs so much money. At a pack a day, you're spending $1,900 a year. Had you instead invested that money at an 8% return for the last 30 years, you'd have $250,000 in the bank today. That's enough to buy a Ferrari."
The smoker looked puzzled.
"Do you smoke?" he asked his co-worker.
"No."
"So where is your Ferrari?"
LESSON #1: Cutting costs doesn't drive growth.
It is really easy to fall into the trap of cost-cutting as a bottom-line improvement measure. You are probably looking at multiple opportunities within your own company that could reduce expenses and wondering why doesn't the guy above you worry about these. Because they won't lead to growth. The juice is not simply not worth the squeeze.
LESSON #2: Just because it won't help you get a Ferrari right away, it doesn't mean you shouldn't give up smoking.
Improving your company's health and making operations leaner will help you improve customer and employee satisfaction, improve retention and help you scale your growth (Enjoy your Ferrari longer). This is not about cutting nickels and dime. It is not about removing pickles from a sandwich but about electronic check deposits for customers. It is about thinking differently about how the whole model can be redone with newer options available.
#growth #operations #products #lean