There has considerable focus on "Manufacturing" processes in the context of "Lean" & "Waste". When people have time to think, they realise there is real "Waste" in all of the administrative processes. This is sometimes forgotten. If we start to think about some of the huge financial decisions that are taken daily by governments and corporations, these all have complex processes and analytics that sit behind them. The impacts of failures or defects can run into billions.
The concept of the "8 wastes" has been well established for manufacturing and engineering for decades. We can start to think about applying these "challenges" or concepts to administration. As an example, "Defects" ( 8 Waste #1) can apply in an administration process. This can be as simple as a miss typed letter or fax, and adding or removing a zero to a deal can have an enormous impact. Even if this is caught before it is too late, there has been a delay in the process, which in itself can have a financial impact. This is in addition to the time associated with getting it corrected. Every error has a waste, a touch point by an individual, and a multiplier associated with all those involved. Data in a recent CNBC article suggests that spreadsheet errors can cost billions. This is a huge opportunity for standardisation, which is one of the cornerstones of "Lean Thinking". Furthermore, delayed or inefficient decision making can cost vast sums of money. This is another opportunity for a lean approach. Poor decision making processes usually encompass at least seven of the eight wastes, if not all of them. Think of the "Waiting Time" ( 8 Waste #3), and how that has a huge negative effect on the decision making process. However, help is at hand. By following lean principles/approaches and working on the "Waste Free" mindset, these associated losses can be significantly reduced or eliminated. We managed to significantly improve the decision making processes on multi-million CAPEX expenditures for a major UKR conglomerate back in 2014 with a lean approach. Decisions were taken more rapidly, and unnecessary recycles avoided.
I refer to my recent blog post on decision making in the post "Brexit" environment, the opportunities for better and more sustainable results through effective decision making are immense.