The Secret to Increasing Your Revenue

By: Kathy Kent Toney, CEO & Founder of Kent Business Solutions

Image by Freepik

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With the start of a new year, most organizations' leadership are looking for ways to decrease costs and increase revenue. One way to go about that is to eliminate waste in their operations.

Employees ultimately want to do the same thing. They don't want to deal with inefficiencies that waste their time.

What to do? Streamline your workflows with Lean tools.

For those of you unfamiliar with Lean, here’s a simple definition:

The use of Lean eliminates waste in manufacturing and office processes. It also creates more value for customers while using fewer resources. Doing so lowers costs.

But those aren't the only benefits.

Streamlined processes also reduce employee frustration. Through Lean activities, employees help develop the solution. Since they are involved firsthand, this often brings a greater sense of engagement and job satisfaction.

Reduced costs and more engaged employees ultimately contribute to greater profitability. And what company doesn't want that?

You don't need to take my word for it. Here's an example of a successful Lean implementation in which my colleague was involved. Before they started the project, this Kansas City manufacturer recorded $18M in annual sales and employed 100 employees. Two years after their Lean implementation, they experienced these results:

• An increase in net income of 30% through:
  • Lowering lead times by 50%
  • Reducing costs by about $250K 
• An increase in inventory turnover by 300% through:
  • Lowering inventory while increasing sales

Companies that embrace Lean principles aren’t the only ones to reap the benefits—customers do as well. When companies go Lean, customers experience higher satisfaction and increased product quality. A fundamental tenet of Lean is ensuring that only value-added activities occur regularly for which a customer would be willing to pay.

You may think: "these benefits are all good, but I don't work on a factory floor. Here’s some good news: any organization or discipline can benefit from using Lean. Check out this video to see how Lean can help Sales and Marketing!

Are you interested in learning more? Here are some tips on starting a Lean-thinking attitude in your organization.

If you'd like to explore what Lean or other process improvement approaches can do for your organization, I'm offering a free ½ hour Discovery Call. I'd love to discuss any questions about Lean or any challenges you are experiencing!

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