One of the biggest problems in the world today is excess. Pulling the trigger too fast and mass producing prior to customer feedback can lead to waste and loss of profits. In this article, we’re going to study an example of a business model that has devised systems to combat these all-too-common issues: Toyota.
Customer engagement allows you to create your goods and services based on what your customers want, the quantity in which they want it, and the schedule of delivery that works best for them. Not only does this make your customer happy, but it also saves you from producing things your customer doesn’t find meaningful. If your product is not meaningful, customers will not buy. Arming your company with this information increases your bottom line by growing profits and reducing failed products.
The company famously developed an eight-step process for solving business problems. The process feels like mere common sense, but if you hit each step point-by-point, you’ll be amazed at the clarity and perspective the process provides! Let’s take a quick look at Toyota’s eight-step process for solving business problems:
- Get a clear idea of the problem.
- Break the issue into smaller problems.
- Set a target for completion.
- Identify causal factors.
- Develop measures to resolve causal factors.
- Deploy measures one at a time and check feedback.
- Monitor how successful the measures are.
- Adopt the successful measure as part of your new operating process.
Following these steps can keep your company growing through even the most difficult times. This system is proactive and prevents you from falling into the trap of decisional paralysis that can cripple your business.
Streamlining a process is eliminating all of the things that are unnecessary to production. Many times, we do things a certain way simply because that is the way we’ve always done them. Taking a good look at what may be unnecessary can reduce time in production and delivery and can even lower materials and labor costs.
In a push system, many products are produced ahead of demand that may never sell. Moreover, if there are defects found later, damage control is much more difficult.
A pull system allows the customer to drive demand and to increase customer satisfaction. Problems that arise can be corrected before more products are shipped, leading to increased satisfaction and bigger profits.
Putting these ideas into practice can reduce costs, increase customer satisfaction and loyalty, and even reduce your footprint on the planet.
Do you need more help and guidance to grow your business? With help from The Academy of Entrepreneurial Excellence and consistent effort on your part, you can increase your profits and take your business to the next level.