What is the biggest secret to successful business? Why there are extremely successful businesses and pure failures? Why some businesses on stagnation and others skyrocketing?
I liked how Mike King distilled the essence of the book:
“…the goal to be; to make money. Its not to cut costs, reduce wages, increase efficiency, or any of the other traditional measures that were in place. Its about balancing 3 critical areas of the plant’s operations in order to make more money, regardless of those other measures. These three components need to happen simultaneously in order to have any significance and these are:
- Reduce Inventory
- Reduce Operating Expense
- Increase throughput “
I strongly believe that in order to grow the business one needs to focus and Grow Quality – Not Quantity. Tim Ferriss Dedicates whole chapter for E [stands for Eliminating] in his “The 4-hour workweek” book. Focus on small set of great products or services. And deliver the best quality. The more products and services the more friction and operations costs.
Reduce Operating Expense
Overwhelmed with billing, forecasting, reporting, and other operations related stuff? Your team needs too much managerial attention? That is how investment beats the return on it. What is your goal? Writing complex reports, updating redundant systems? Or produce value? Can you estimate your investment and the value you make? The rest is pretty simple math…
This is where personal and team’s productivity kicks in. Do more with less. Be productive and efficient. Apply Personal Performance Engineering Practices.
Hit your daily, weekly, monthly, yearly, lifetime goal.