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them to be onsite and ready to go
first-thing. The value wasn’t in making
their product better; it was in making
their service more customer-friendly.
c) Widen your field of vision to rethink
the “solution” required: Years ago,
GE’s locomotive division shaved
hours off of the repair time, only to
realize that the real problem was
the weeks of downtime while the
locomotive was transported to and
from their repair facilities. When they
turned their attention to reducing
total downtime, they found a new
source of CI and value-add.
d) Understand how the new infrastruc-
ture to support new segments is
different from what exists today in
the future state map: What’s required
for a new infrastructure model you
envision, including products and/or
services, distribution footprint, pro-
cesses organization, labor, overhead
and capital? This dimensions your
cash requirement for the future.
Step 2: Re-imagine cash-flow
and profit to fund growth.
a) Think differently to prepare for
CHANGE: We’ve already established
that manufacturers traditionally drive
profit and performance by invest-
ing vast time, energy and money to
improve operations, yet that accounts
for only 30 percent of the value chain.
Those areas are the exact part of the
value chain that will be impacted by
drastic disintermediation within the
next five years. Perfecting yesterday’s
business model means you’ll squan-
der the very resources you’ll need
most to cope with change. Instead,
you need to adapt today’s CI invest-
ments now to avoid being caught off
guard, and ensure you’re maximizing
value-add and eliminating waste in
every area of the organization.
b) Think bigger to accelerate excel-
lence across the value chain and
see bottom-line impact: Despite
all the talk of automation, Internet
of Things, artificial intelligence and
robotics, people matter more than
ever in the new manufacturing reality.
They are the ones who create or
destroy value every single day with
the work they do.
Step 3: Re-evaluate how
to generate employee
engagement and alignment
to facilitate growth.
a) Focus on creating meaning for
engagement: Your employees want to
do the right things right the first time,
consistently. Unfortunately, confused
people can’t deliver on the promise of
enterprise excellence. However, when
every person knows where they fit,
why they matter, what they need to do
next to create value and whether their
efforts worked or didn’t, they engage
and want to win everyday.
Every person in every department
and work team must clearly see
and understand how what they are
working on today correlates to and
supports the overall strategic vision.
The late Peter Drucker tells us,
“The essence of management is
not techniques and procedures.
The essence of management is to
make knowledge productive.”
same text he goes on to say that the
purpose of management is to make
human strengths productive and
human weaknesses irrelevant.
b) Focus on creating clarity for align-
ment: Your people will deliver results
once those essential components are
Today, it is uncommon to find companies that do not claim they are practicing
lean, but few still are becoming lean enterprises and even fewer are demonstrating
Companies such as Danaher, Autoliv and Hillenbrand are leading companies
that have adopted lean business management systems, but still represent the
These leading companies balance agility and an understanding of new technol-
ogies, touch points and partners, with in-depth consumer insights-led strategic
planning, and long-term brand consistency.
What’s the secret in going from a loss of $10K per employee to profits of $30K
per employee and achieving a 4X increase in profit in just three years? Frankly,
it’s knowing what is possible and then creating a plan to find and crystallize value
throughout your organization.
Delta Building Products did just that when they got a wake-up call that their profit
per employee was well below the industry standard at the time, and that leading
companies were as much as 10x more profitable than their competitors.
They set a bold new goal and then followed a Profit Roadmap to engage their employ-
ees in applying CI to every area of their value chain, ensuring every transaction was
profitable and every touchpoint was error-free. Costly waste and inefficiencies were
replaced with value-add and competitive advantage throughout the organization.
How leading companies identify market relevance
How Delta Building Products re-imagined cash flow and profit
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