I once visited a food distribution warehouse for a charity. I was astonished at the food items they were offering that week. How could anyone make a meal out of those offerings?
When I asked about the thought process, the crew leader said that no one thought about that. Well, someone should have.
Profit-seeking companies often make major mistakes when they decide to add the wrong...
Many business leaders believe that they should just keep doing what's always worked. In some areas of business, such as providing good service, that can make sense. But often too much consistency holds a business back from earning its full potential. To capture more of that potential, businesses should continually upgrade their business models (who, what, when, why, where, how, and how much of...
A small business leader asked me how he could improve his profits. The business had been established for 50 years and provided more than 4,000 items. The warehouses were bulging with obsolete inventory. What should he do?
I did a profit analysis by item and customer and determined that the company was losing money on 99 percent of the items and 99 percent of the customers.
Drop those...
What does a typical cost reduction look like? Rather than assembling a full product, you may ship it in pieces for the customer to assemble. This means a smaller container and less shipping and assembly cost for you.
But consider the poor customers: They have to now assemble your offering and may not have the skills or tools to do it effectively. You may raise their costs by a lot more...
When every mistake can cost millions, everyone wants to be perfect. Unfortunately, many people have little idea of how to gain that performance even when the goal's importance is clear.
Some business leaders prefer punishment: That means making it as painful as you can stand to make a mistake. But that approach will gain compliance rather than inspired effort. That may be good enough if you...
A teacher was upset because very few students in his country could receive the vocational education in electrical work, plumbing, and auto mechanics that would help improve the nation's effectiveness in producing goods and services. While most would stop there, the teacher decided to do something about it.
He decided to design breakthrough methods that would expand the number of students...
In considering how to expand your business model's delivery of offerings and benefits, you should be guided by what will be easily understandable and desirable by your stakeholders (those who are affected by what you offer) . . . and where the adjustments will provide more effectiveness for nonprofit organizations.
Business model innovation is something that many organizations struggle...
From space many places on Earth look pretty flat. From the ground more obstacles become apparent: Granite mountains loom in places where chasms divide neighboring areas. Both perspectives tell you something you need to know.
The space view shows you the most direct route as the proverbial crow flies, while the close-up view shows you obstacles that are well worth avoiding where that's...
Can you have a Cinderella story about a man? I think so if you see becoming a highly admired business leader as a big change for a technical whiz. I hope you'll agree after learning about Mr. Warren Seetahal, a native of Trinidad. But be warned that there aren't any glass slippers involved . . . just fiber optics.
Mr. Seetahal is the only child of a divorced couple who remained friendly...
My first trip on a German autobahn was an experience I'll never forget. There's no speed limit on these well-engineered and flawlessly maintained roads. Many people drive high-powered Porsches, BMWs, and Mercedes that are designed to almost fly over these routes.
The CEO of a prominent German company loaned me his personal car and driver for a quick jaunt to the airport. Thank God for that...
