Value Creation using Lean

In this short video, I explain how Lean can help increase both Return on Invested Capital (ROIC) and Revenue Growth, resulting in the creation of incremental value in a business.

(Previous blogs on value creation can be viewed here and here)

Lean increases the speed of operations which can be leveraged to increase both ROIC and Revenue Growth.

When a business operates at a higher speed, its cash conversion cycle will reduce in duration. If there is sufficient demand, then running more number of cycles in an year can directly contribute to growth. So Lean helps free-up capacity and facilitate growth in a business. Another consequence of speed enabled by Lean is the reduction of inventory, which when reduced can increase the ROIC, resulting in incremental value creation.

[[Disclaimer: The views expressed in this blog are my own and do not necessarily reflect the views/ position of my past, current and future employers. ]]