How to Add Value

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In Lean Thinking, we use the phrase “value-add” and then qualify that term as taken from the “customer’s perspective.” While that might be true, it’s not concrete enough and is actually difficult to understand.

I am reminded of something my older brother taught me a long time ago.  He said simply (I’m paraphrasing):

You will be financially fine if you can make people’s jobs easier or make money for a company or make things cheaper for a company.

He’s right.  All those elements add value.  I’ve chosen to expand upon what he said and share the items below as practical tips to add value.

I believe what my brother taught me is still right: if you do some of the things below really well, you will likely be always in demand and be financially just fine.

In summary,

• Increase: Revenue, Profit, Growth, Market, Share, Retention, ROA or ROI, Efficiency, Cash Flow, Visibility
• Reduce: Cost, Time/Effort, Complaints, Risk, Turnover, Conflict, Paperwork
• Improve: Productivity, Process, Service, Information, Morale, Image, Reputation, Skills, Quality, Loyalty
• Create: Strategy, System, Process, Business, Product, Service, Brand

Thanks for the inspiration.

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