Every organization has its habits, this habits form the culture which is basically the organizations way of doing things. Good culture fosters organizational prosperity while a bad culture fosters organizations down fall.
A Good Organizational Culture
A good culture in any organization is one where the culture promotes continuous improvement to cope with the macro environmental changes and reduce waste. It is one where there is ease of doing business.ie Customers find it easier to deal with the organization. It is one with effective Strategies and efficient operations.
Ways to improve in your organization
Organization can improve their strategic effectiveness in 2 ways 1. Through Addition- for example to increase sales we should increase the number of sales people. 2. Through subtraction –for example to increase the sales we must ensure we get the maximum output per person from our current sales team through minimizing the unnecessary activity they do (waste) and letting them focus on activities that increase sales. The Addition option is an easy fix but it’s wasteful and not cost effective in the long run The Subtraction option is difficult but more cost effective in the long run. The best method of improving your operational efficiency and strategic effectiveness is by reducing the waste in your organization. This means getting the optimal out put from minimal resources Less is always better
How do you Identify waste in your organization
Waste is anything that the customer is not willing to pay for and does not add value to your product or service. There are 3 types of waste Waste from redundancy – not usable Waste from excess burden – i.e. from over stocking, too much inventory Waste from variation – when you produce goods or services with differences. Ideally the customer experience with your goods and services should be similar to build a consistent brand.
How to identify waste in your organization
Look at the processes and activities of different functions in the organization and identify those that the customer is willing to pay for. For example, below are some activities of a sales person in an organization