Management with a conventional perspective in their approach attack problems predictably . . . predictably wrong. If revenue is the problem, set a target for more revenue. Expenses to high set a target for to lower costs.
The real question that eludes such approaches is ” by what method?”
Subordinates are left with new targets and no method. This is not good management. Can we even call this management?
Conventional methods for increased revenue call “pushing” sales to customers. Some so dysfunctional in one telecomm that customers are pushed products for mobile phones that don’t even fit. However, revenue gets recognized and the cost problem created (returns) is for another month or another group that is responsible for costs.
Reducing expenses? Cut back on travel, office supplies, maintenance, outsourcing and if things are bad – heads must roll. All short-term thinking and lead to increased costs later.
They above examples are the scarcity mentality we live with today. No real growth or understanding of where costs manifest themselves. Innovative methods to address revenue and cost issues are lacking. Yet, the more service organizations that I study I find literally hundreds of opportunities. However, most organizations don’t know how or where to look.
Work design, flow and an understanding of customer demand are where the hidden gems lie. Six Sigma and Lean have tools to get to these gems, just they are usually the wrong tools for the job. Knowing how and where to find the gems allows you to go find them and quite simply . . . pick them up.
Tripp Babbitt is a speaker, blogger and consultant to service industry (private and public). His organization helps executives find a better way to make the work work. Read his column at Quality Digest and his articles for CustomermanagementIQ.com. Reach him on Twitter at www.twitter.com/TriBabbitt or LinkedIn at www.linkedin.com/in/trippbabbitt.Share This: