How much is waste costing your organization? It’s possible you may not have thought much about it before. After all, things are busier than they’ve ever been and we all have our jobs to do. As long as we can get the work done and enough funds are coming in the door, it’s a good day, right?
You’ve heard the old adage “a penny saved is a penny earned.” But consider the following business scenario: if your operating profit is 10% and you are able to eliminate enough waste to lower your costs by 10%, your profits will nearly double without earning any addition revenue. Pennies aren’t worth much in today’s dollars, but add a few zeros on the end and it adds up quickly.
You don’t need to be in a profit-producing role or be Six Sigma certified to be a productivity leader. There’s waste everywhere – in for-profit and non-profit organizations alike – and in every function. It’s a leadership responsibility to identify and drive out waste when we see it.