The purpose of our business is to deliver substantial and sustainable improvements to the bottom line. We do this by identifying the points in a business where Value1 is created and thereafter we work with the relevant stakeholders to configure resources in a manner which focuses the whole of the business on maximising Value Creation. The end result is that Flows2 throughout the business are optimised and Waste3 in all of its forms is minimised. By driving Value Creation up while driving Waste down, improvements drop to the bottom line.
In order for results to be sustainable, individual business lines must be at least capable of making a contribution to overheads and when taken as a whole, the sum total of the business lines must deliver a profit. Where these conditions are not met, strategic choices are required, which is when we engage at a strategic level with our Clients to examine the overall Business Model and to decide on which lines of business to build, to hold, or to exit. In turn, within each business line, we evaluate the product mix and the contribution margin by product so that the business can focus on introducing, building and holding those products/services which increase the value created by the business.
1. Any action or process that a customer would be willing to pay for
2. By forcing smooth flow of only value-adding steps, problems become visible and can be dealt with
3. There are 8 types of waste: Defects, Overproduction, Waiting, Non-utilised Talent, Transportation, Inventory, Motion and Extra Processing