One of the biggest mistakes that any organization can make is the assumption that lean strategy is designed solely for manufacturing. Lean strategy helps organizations to solve challenging problems across the company, offer a laser-focused customer experience, and empower their teams for turbocharged performance. All this means that your services and administration (S&A) department can dramatically improve their contributions by adopting lean thinking.
How a Lean Approach to Services and Administration Improves Performance
The service industry now makes up over 80% of America’s Gross Domestic Product (GPD). Even within manufacturing organizations, 20% of product prices are driven by direct manufacturing costs. Eighty percent is made up of costs associated with service, administration, and design functions. Is your company spending money in the places that drive the most significant customer value?
Services and administration keeps your company running: executive support, finance, and facilitating the flow of information are just a few examples of the ways S&A does this. Yet in many organizations, services and administration are riddled with waste and inefficiency. Some studies have shown that services and administration processes can incorporate as much as 30% – 80% of pure waste. Lean thinking can help your S&A team focus on high-value activities that move the company forward in line with your most important company objectives.
Lean Strategy Drives Cultural Transformation Among S&A Staff
Incito’s S&A analysis shows that out of each day, administrative employees conduct non-value added activity up to an average of 300 minutes per day. Think about it: up to six hour of employee time wasted on activities that don’t move the needle forward. When you apply lean strategy to your services and administration activities, you’re able to:
Ensure that your entire time understands the company’s True North critical mission and that they’re working toward advancing your goals
Ensure your S&A team makes contributions that improve the customer experience
Determine which S&A processes contribute real value to your company’s efforts and which ones can be improved through eliminating waste
Introduce a higher level of efficiency into your company’s support activities and reclaim wasted employee time to refocus on high-value add activities
Save money, improve the bottom line, and free up critical capital to reinvest in your business’ growth
Incito Consulting Group utilizes decades of experience to assist you in dramatically reducing waste within your service and administration department while building a culture of world-class continuous improvement.
Are you ready to explore how lean thinking can help your services and administration teams become a more effective and valued part of your organization? Contact Incito today to learn more.