Welcome to this week’s edition of the 5 Point Friday Newsletter from Leanscape!
At Leanscape, we believe Lean Thinking is the key to unlocking success. That’s why we are dedicated to providing our readers with a weekly newsletter with tools and tips for embracing Lean principles in their work.
This week, we’ve put together five thoughts that will help you stay ahead of the curve when utilising Lean principles in your business. From increasing your efficiency and productivity to transforming how you think about operations, these pieces will provide valuable insights into the power of Lean Thinking and its potential at your organisation.
We also want to remind you that our team of experienced advisors are always here for support should any questions arise throughout your journey towards understanding Lean Thinking. Feel free to reach out anytime if you want personalised advice on applying these strategies in practice.
Thought No. 1
How complexity costs money
As a product or service’s complexity increases, so does the cost associated with its development, launch, and ongoing maintenance. The more complex a system is – an application, website, product, or even process – the more resources are required to build and maintain it. As these resources become increasingly scarce and expensive, so do the associated costs.
With every added feature or component, companies must invest in time-consuming research and testing to ensure their product meets quality standards. Companies must also invest in personnel to manage these complexities over time to stay ahead of potential problems.
Furthermore, companies need to invest in technology infrastructure that is robust enough to handle all of the workings of a highly complex system. This adds up quickly when complexity levels start increasing – making it essential for businesses to think strategically about optimising their investments while reducing costs.
Complexity = Costs
“It’s not enough to simply invest in complexity – you must actively manage it.” – Edward Deming, Quality Control Expert.
The quality control expert is right – too much complexity can quickly become costly if not managed properly. When investing in complexity, businesses need to think strategically about how they will monitor and maintain the system over time to ensure that all elements are running smoothly and efficiently.
This includes having the right personnel on board who are trained to address any issues that arise and the necessary technology infrastructure that can handle all of its complexities. By doing this, companies will be able to keep costs down while taking full advantage of the benefits of increased complexity.
Thought No. 2
How can project charters align the business and projects?
Project charters are essential for ensuring that a business’s goals and strategies align with the projects they undertake. By providing a clear vision of what is expected from each project, they ensure everyone understands their role and how it contributes to achieving success. Project charters also help businesses focus on projects with the greatest return on investment by outlining measurable objectives and specific tasks needed to complete them.
Finally, these documents guide decision-making processes and highlight areas where further resources or support may be necessary to succeed. In short, project charters can make sure that businesses stay focused on their core mission while still being able to take advantage of new opportunities.
To learn more, check out What is a Project Charter and Why is it Important.
Thought No. 3
Two quotations for reflection this weekend
1. “Change is the only constant in life”
Heraclitus of Ephesus
This ancient Greek philosopher’s words are as true today as they were centuries ago. Change is inevitable, and embracing it can bring tremendous advantages, such as increased efficiency and productivity. Companies that stay ahead of the curve by continuously adapting to changing market dynamics often find themselves at an advantage over their peers. Furthermore, technology has accelerated the rate of change considerably in recent years, making it even more important for businesses to remain agile and open to new opportunities.
2. “It’s not the strongest species that survive, nor the most intelligent, but the ones most responsive to change”
Charles Darwin
Darwin’s observation that adaptation is key for survival is no less relevant in business than in nature. Those who can recognise changes in their industry early on and respond proactively will be better positioned to take advantage of opportunities when they arise. Adapting quickly and effectively can also mean staying ahead of competitors or avoiding costly mistakes caused by lagging behind industry trends. Being open-minded and embracing change takes courage but is often essential for success in a quickly evolving landscape.
Thought No. 4
Companies are failing to provide the proper training and L&D support to employees.
Some key insights:
– 75% of 1,500 managers surveyed from across 50 organisations were dissatisfied with their company’s Learning & Development function-
– 70% of employees report that they don’t have mastery of the skills needed to do their jobs
– Only 12% of employees apply new skills learned in L&D programs to their jobs
– Only 25% of respondents to a recent McKinsey survey believe that training measurably improved performance.
The traditional training and learning & development (L&D) approach is ineffective.
With employees reporting a lack of mastery in their skills, limited application of new skills learned from programs, and few perceiving any tangible improvement in performance due to L&D initiatives, it is time for companies to re-evaluate how they train their people.
By embracing change and investing in new approaches, training needs to be practical and connected, and employees need to know the value.
We believe self-directed projects are the key to unlocking potential.
Thought No. 5
A weekend read recommendation
With so much discussion on ChatGPT, I would recommend that everyone reads the first chapter of AI 2041: Ten Visions for Our Future. It explores what could happen if we moved away from simple AI to AGI (Artificial General Intelligence).
AI 2041: Ten Visions for Our Future is an essential read for anyone interested in the future of Artificial Intelligence. In it, leading experts from around the world discuss ten different scenarios for AI in the year 2041. With a carefully considered and thought-provoking approach, each scenario paints a vivid picture of how AI could shape our lives in the next two decades.
From predictions about what impact AI will have on healthcare and education to forecasts about its influence on geopolitics and economics, this book offers a comprehensive look at the possibilities ahead. It also explores topics such as ethics, privacy, and job displacement to give readers a holistic understanding of the implications of AI technology.
Although much of what is discussed is speculation, this book provides invaluable insight into how AI could reshape our lives in numerous ways over the coming years.
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Have a great weekend!
Stay Lean!
Reagan
