In a previous post, I introduced the concept of Operational Elegance. Here is an assessment I have created called The Operational Elegance Index. This Index helps you assess how you can accelerate growth and maximize profitability.
I just delivered a teleconference to operational excellence executives and told them four ways to create a thriving operational excellence function in their organizations:
Act like King Midas. Everything the operational excellence department touches should turn to gold. The job of an operational excellence department is to make the organization better, not support it.
Lead Them Through the Tunnel. Show the organization the light on how to better prioritize so that only the best strategies and ideas are being worked on.
Be The Fountain of Youth for Ideas. A thriving operational excellence function is the constant source of new ideas and new opportunities. It helps make the intrinsic extrinsic by identifying best practices and key pieces of information and figuring out how to share and replicate it across the organization.
Be a Jack of all Trades and Master of All. An operational excellence department needs to prod, poke, and provoke. It needs to be part strategic adviser, part therapist. Part provocateur and part voyeur. It needs to see things differently and provide new insights and perspectives.
A thriving and valuable operational excellence function will help the organization generate revenue, attract and retain customers, identify and implement new ideas, and maximize profitability. If your operational excellence function isn’t doing that, then you are doing something wrong.
Miller’s Monday Morning Message presented by ACM Consulting Inc.
Andrew Miller on operational excellence, strategy, life balance and everything in between
Toronto – May 26, 2014
All organizations are trying to figure out how to increase profit margins. Increasing revenues, lowering costs, retaining customers, and managing pricing better are all ways this can happen. But what’s most important in improving profit margins is tapping into the emotions of the customer. That’s where E = mc2comes in.
E = Emotion
m = Margin
c2 = Customer Continuance
In this context, E = mc2 means that emotional appeal with customers improves your margins. Stated another way, if you can create an emotional connection with your customers, margins will go up. It’s that simple. Creating that emotional connection makes customer retention easier. It creates loyal ambassadors for your brand. It even makes acquiring new customers easier. It makes growth easier.
Einstein used this equation to describe the theory of relativity, I’m using it to describe the practice of profitability. This is not a theory. Make an emotional connection with your customers and they will continue to buy from you, and your margins will increase.
What can you do to ensure that E = mc2 in your organization?
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