The Right Tools to Do Your Best
LEAN thinking and using Open Book Management (The Great Game of Business)
Last time we spoke I mentioned how LEAN thinking is centered on making obvious what adds value by reducing everything else.
Let’s take a closer look at what goes on – If you are involved in some kind of LEAN journey (which you should be by the way) there are two foundational principles – they are eliminating waste and continuous improvement.
Now to start there are many cross over tools….for example one of the first things to do is to perform a 5 why or Define the issue – if you are using the Great Game one of the common themes is “It teaches employees to think and act like owners. They learn to measure goals and accomplishments the same way the financial world does”.
The effectiveness of any process improvement tool depends on understanding the situation, choosing the simplest tool and the creative use of the tool.
5 Whys is a very simple tool to use….the easiest way to understand this tool is to imagine talking to your young son or daughter about something they are trying to understand! Ahhh I can still hear the voices in my head asking why do I have to go to bed now….eat at least one more bite….I think you get it!
Yep – it can drive you crazy at first but let’s face it all those questions make you think! Once the “whys” were asked and the project revealed and tested with data that is where the magic happens. Here is a quick visual of a 5 Why worksheet….thank you internet!
If you are using OBM or more importantly the GGOB philosophy (Yes there is a difference) the comparison to the 5 why would be the Critical Number – the definition of a critical number is that it is a key driver that greatly influences the performance of the business. By definition the critical number is the one number that at any given time is going to have the biggest impact on what you are doing and where you want to go…..
Hey…..just like asking 5 why’s!! Okay – so know you can see the similarities right!
The reason that I am showing the two together is simple….Lean / Six Sigma / Great Game of Business are all tools that you as a business owner, manager, team lead can use to find the problem(s) in your respective area and correct them….also this can be a great way to motivate you or your teams to ask questions as to why you do the things that you do and how can they be improved….
Yeah I got you to think about waste and continuous improvement right there…..I bet many of you had an area or idea that popped into your mind didn’t you!
If that happened write it down….ask the 5 whys and compare those to the critical number recipe….now you have taken your first step on your lean journey using financial literacy tools!
It doesn’t stop here – actually we are just starting….pack a few snacks for this journey….in the next few articles we will dig into this a bit deeper!
Thanks to my GGOB friends for the critical number definition – and thanks to the internet for the many images.
If you have specific questions drop me a note on LinkedIn