Quality guru W. Edwards Deming said 40% of most companies is waste.

You obtain full value from the investment you’re already making in your business by reducing waste on four levels:

Level One

  • Stop Stupid Spending – unnecessary and foolish purchases
  • Show Me the Money – collection prevention – working upstream to address issues that lead inevitably to unnecessary receivables

Level Two

  • Process documentation and improvement – efficient, effective work processes require regular monitoring and maintenance – at least

Level Three

  • Reduce employee turnover – average cost to replace a laborer: $3000+  –- average cost for middle managers: 2-4x annual salary – do the math
  • Reduce customer churn – calculate cost of a lost customer x number lost per period – frightening

Level Four

  • Maximize return on employee investment – employees probably represent your biggest investment – what if 40% of that investment is waste?

How we go after waste…

  • Work with Spirit to identify important opportunities to reduce waste.
  • Ask for guidance about leveraged action to attack pockets of waste.
  • Focus on key business processes to provide immediate leverage for improvement.
  • Seek out low-hanging fruit where waste usually accumulates.
  • Involve workers and leaders in owning work.
  • Change the conversation around waste.
  • Measure waste in ongoing ways.
  • Target improvements that ripple through the entire company, multiplying and aligning effects.