I continue to be frustrated by the notion that the only way to reduce spending is by cutting services. While the demand for change is high, few are willing to challenge tradition and conventional thinking to improve services and increase efficiencies that will enable us to do more with less, find new opportunities, and to create jobs instead of eliminating them.
On a global level, governments continue to grapple with increasing economic pressures brought on by the recession. Rather than demonstrating fiscal restraint however, governments have grown and spending has increased at rates that far exceed that of the public sector. The result is an unsustainable government and services that will either be cut or funded through newly created revenue streams.
Rather than challenging the infrastructure and systems that comprise the delivery of these services, the governments scramble to find new ways to reach further into our pockets to pay for inefficiencies, high paid union labour, and questionable entitlements. In some instances, services have been abandoned only to be properly managed by the private sector.
For example, when we consider the delivery of health care in Canada, we find a system plagued by excessive wait times and ever rising costs. Doctors and specialists continue to operate as a fragmented community of service providers, adding layers of bureaucracy, greater inefficiencies, and more cost.
These inefficiencies are further evidenced by patients who are sent into a frenzied schedule of appointments and tests in various locations without regard for the many inconveniences and disruptions they may incur in their personal lives.
On the other hand, emergency rooms do not present the same constraints and, though some waiting may be required, patients are examined and assessed immediately, a prognosis is determined, priorities are established, and resources are made available on demand as required.
Expedience does not jeopardize the level of care provided. While the emergency room may not present the ideal case, it is radically different from “standard” care.
In stark contrast to the government-political processes that continue to insult our intelligence, I am always encouraged by the innovative and entrepreneurial spirit of individuals who prove that there is always a better way and more than one solution:
- Brilliant Printing Technology Advancing Technology
- Hanging From A Thread Healthcare Services
- Lean Healthcare – Sunnybrook Surgeons given a hands-off way to Kinect Sunnybrook Hospital
- Critical Condition – Where there’s a Will, there’s a way – A Mississauga company has a partial cure to what ails our struggling healthcare system (http://www.thoughtspeed.biz)
Where do we start?
The quicker we realize that truly radical changes are necessary, the sooner we can abandon traditional cost cutting practices and apply Lean Thinking to improve society as we know it, not cut it to shreds. My simplified definition of Lean Thinking follows:
Lean is the pursuit of perfection and pure value through the relentless elimination of waste.
As every lean practitioner will tell you, the process begins by defining value. Unfortunately, many governments and companies alike start by falsely assuming that they are already providing the value that customers want or need. As such, they attempt to improve existing products or services by either adding features or making them faster and cheaper. From the perspective of Lean Thinking, the “secret” to making real change begins by finding:
“… a mechanism for rethinking the value of their core products to their customers.”
In this same context, consider how our desire to “travel from Point A to Point B in the shortest time” has evolved and transformed our personal modes of transportation / communication into the following “value” propositions:
- Personal: Crawl > Walk > Run > Tricycle > Bicycle
- Roadways: Bicycle, Motorcycles, Cars, Buses
- Railways: Passenger and Freight Trains
- Seaways: Boats, Ships
- Airways: Helicopters, Planes, Jets, Rockets
- Telephone: Phones, Faxes, Internet (email, social media)
Each mode of transportation presents a unique solution to address a shared common value: “Short Travel Time”. Although changing technologies is inferred, lean does not require an investment in new technologies to be successful. To the contrary, Lean Thinking simply challenges us to consider the value our customers are demanding. Accordingly, we must ensure that our infrastructure, business practices, and methodologies deliver that value in the most efficient and effective manner possible.
Only when we focus on “value” from a customer perspective can we offer a solution that truly meets the customer’s needs. When we consider the premise for this example, the need to travel is implied. It does not answer the question “Why do we travel?
If the reason for traveling is simply to “communicate” with friends and family, then we can see that the telephone becomes a viable solution to eliminate the need to travel at all. From a similar perspective, fax machines and the internet were created to expedite data transfers and to communicate with the world in real-time.
The Challenge is On
It is time for all levels of government, business, unions, and society as a whole to acknowledge that our economy is in a state of crisis and demands real action. Real people are hurting at a time when others are pursuing their own agendas for self-preservation – all at the expense of society. We can not simply assume that everything is “just fine – only more expensive”.
Lean Thinking is a requisite mandate for any company wanting to compete in today’s global market. In this regard, the same challenges exist for governments and businesses alike to adopt lean thinking to deliver real value to the people they serve at prices we can all afford.
The Globe And Mail featured an article titled “ What Ottawa can do to help manufacturers excel globally – Globe And Mail” href=”http://www.theglobeandmail.com/report-on-business/economy/manufacturing/what-ottawa-can-do-to-help-manufacturers-excel-globally/article2060854/” target=”_blank”>What Ottawa can do to help manufacturers excel globally” that cites feedback for improvements from manufacturers and businesses in various industries. Unemployment in the United States is hovering at 9% and, as this video “Focus On Jobs or Spending Cuts” demonstrates, the challenge to deliver new jobs is also in jeopardy.
Unless government spending is brought under control and services are delivered effectively and efficiently, the system is sure to implode. It’s time for an extreme make over, engaging the best and sharpest minds to bring us to the cutting edge in business and technology, not to the cutting board where nothing remains but shattered hopes and dreams.
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Until Next Time – STAY lean!Follow @Versalytics
- Rebuilding our Economy: Fragile – Handle with Care (leanexecution.wordpress.com)
- Gingrich signs Lean Six Sigma deficit reduction pledge (guidonps.com)
- Critical Condition – Where there’s a Will, there’s a way (thoughtspeed.biz)
- What Ottawa Can do (GlobeAndMail.com)