| Adding value to a process is not as hard as it may | | | | market segment from your competitor? If you answer |
| seem. The first question you have to ask yourself is | | | | yes to any of those questions it is probably a good |
| "does the added step or service give my customer | | | | investment. |
| something he or she desires?" Meeting the customer's | | | | Decreasing costs is another reason for process |
| expectations, no going above the customer's | | | | improvement. Removing redundancy can save money. |
| expectations, is how you add true value to a customer | | | | Even with the goal of decreasing money you still have |
| oriented process. | | | | to ask yourself, "will this step subtract from the value |
| When you start looking at what processes need | | | | of our products from a customer's perspective?" If it |
| improvement start with areas that customers have | | | | doesn't then it is more than likely a good idea. If it |
| complained about or where your competitor performs | | | | reduces the value of a service or product to a |
| better than you. Take the processes apart, look at | | | | customer you better rethink your plan. A big savings |
| them step by step. Identify the areas that can be | | | | initially, may not be worth the loss in customer orders |
| improved and discuss them with people directly | | | | over the next quarters. Those losses could effectively |
| involved in the processes. Consider all suggestions. | | | | eat all of your savings you realized from implementing |
| Ask the contributor "what value does this give the | | | | the cost cutting process in the first place. |
| customer?" If they can provide a benefit that truly | | | | If your efforts do not add value for the customer, do |
| adds value from the customer's perspective | | | | not waste your time. You have to always focus on |
| investigate the option. | | | | your customer. Without them you are out of business. |
| Remember that cost is relative to benefit. If the | | | | Success does not mean that you can forget about |
| investment required is a large one, focus on the | | | | your customers. Start reducing costs to save money, |
| benefits. Does the improvement add to your ability to | | | | without thinking of the impact it has on your customers, |
| retain loyal customers? Does the improvement steal a | | | | and you will have no customers left. |