Getting Lean. It’s Good for the Customer.

February 3, 2012 in Culture, Processes, Team Improvement

The term “lean” has been with us for years now. It was originally used to describe a particular type of manufacturing process that optimized production while mitigate the associated costs. It is good, basic common sense about how to get more with less. While it won proponents around the world, it did so primarily on the basis of how it affected company results. Money was saved; profits were thus encouraged.

What was left undiscussed in these years is the way in which this type of approach – not just to manufacturing, but to all areas of business – actually helps the customer. Obviously, the point is not to try to do more with less for customers by shutting down the call center a half hour earlier everyday because fewer customers call in that last half hour. Quite the opposite. It is about recognizing that additional resources are created through lean processes, and those resources can be devoted to improving the customer experience, either through new product development or even through keeping call center open another half hour later every day.

Thinking lean simply means thinking about optimal leverage, in all your processes, with the idea in mind that ultimately, you are in business to serve customers.

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Companies Change With the Right Focus on Innovation

January 27, 2012 in Culture, Innovation, Team Improvement

Procter & Gamble might not be the first name that comes to mind when thinking about a list of the Masters of Innovation. The company, more than 100 years old, makes products that most of us grew up with, and many of our parents grew up with. And many of those products hardly seem game-changing. Take Pampers for example. Or Crest. How about Tide? Good product, but hardly the iPhone.

With this in mind, when A.G. Lafley took over the helm as CEO in 2000, he saw that the way out of the struggles the company had at the time was through the portal of innovation. The process he took to do that is well documented in the book, The Game Changer, which was written with Ram Charan. A review of the book can be found in the April 14, 2008 issue of Businessweek, p. 73, “How P&G Pampers New Thinking.

As the article highlights, the distinctive feature of this book is the way in which it provides granular look at P&G’s process, elevating it above the typical philosophizing on the subject of innovation so popular in the press today.

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Myers-Briggs Research Predicts Successful Innovators

November 18, 2011 in Creativity, Culture, Innovation, Team Improvement

Myers Brigss CIRI

Creativity Index: While few people would argue against the desirability of placing creative people in new product development project analysis positions, the question of how a firm can accurately identify creative people has been less clear. One answer is to use personality testing to assess the creativity of a firm’s personnel. One such assessment tool found to be particularly useful is the MBTI Creativity Index, or MBTI-CI .

Rainmaker index: Applying Keirsey’s theory of Temperaments resulted in developing a new “Rainmaker Index” specifically tuned to profitability from the “fuzzy front end” of new product development. According to research conducted by Greg A. Stevens, James Burley, Ph.D. and Richard Devine presented to the 1998 Research Conference at the Annual International Conference of the Product Development and Management Association (PDMA), analysts with MBTI preferences for intuition (“N”) and thinking (“T”) score highest on this index. Analysts in this grouping represented the top third of the “Rainmaker Index” and generated 95 times more profit than those in the bottom third. This compares to 11 times more profit for the analysts in the top third of the MBTI-Creativity Index which included the MBTI preferences of intuition (“N”) and feeling (“F”) in addition to the previous named grouping.

Hence, the “Rainmaker Index” further improves the identification of analysts who will identify profitable opportunities in the “fuzzy front end” of NPD by a factor of 8.6 times compared to the previously reported MBTI-CI.

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