My name is Peter Herku. I help companies and individuals to achieve operational excellence to improve their efficiency and profitability.
Increasing your profit
Clients established companies with an annual revenue of at least with 5 million dollars come to me and they are frustrated. They want to work on continuous improvement, but they feel like there are only a few people in their company that can really do anything about their productivity and their profitability. I can really relate to and understand these clients. I really understand them because nobody is learning anywhere, not at school, not at university, how to improve profitability. Sales yes, sales training, marketing training, there is a lot of it, especially on the internet – to increase the upper line or top line of your profit and loss account. But nobody is talking about the operational part, the expense part of your profit or loss account – how to reduce costs.
Aiming for Operational Excellence
I help companies to reduce costs but not the way you think. Normally you reduce costs by cutting expenses, reducing the number of employees, but that’s it’s not the long term approach that I teach companies. The frustration of my clients comes with a feeling that they don’t have control, but are ruled by chance. It looks like good and bad years just happen to them, without them being able to influence this very much. What I teach them is that they should work on operational excellence. What does that mean? It means that they should improve their overall processes, any processes as a matter of fact. So whether it’s in production, whether it’s an administrative process, whether it’s an HR process, whether it’s a marketing or sales process – it doesn’t matter. Everyone in the company should learn a method that they can apply every day in their own work and together as a team in order to improve the efficiency of their own job. There are processes that they are responsible for.
There is a method for this, there are many methods actually. I teach Lean Six Sigma. This is a method that is coming from a production environment. Six Sigma is from Motorola, actually applied by General Electric and many, many other companies by now. The Lean part, Lean Manufacturing, comes from Toyota who use it to achieve of operational excellence. The most important, though, is that you have your employees master an easy-to-use method, so that they can work together continually, day by day, week by week and improve all kinds of processes.
Example: HR department
Just to give you an example. If you are working in an HR department, a human resources department – what are the processes that you deal with? It starts with the selection of new employees: finding and selecting new employees. This is a very important process that you have to work on. What is the problem there? You don’t find the right person or the process takes too long. You find people that are leaving within a few weeks after they got their contract, because they don’t like the work or you have to them go early, because they are not the right fit. Finding and selecting the right employees is very important process to work on. Another important process is onboarding of new employees. So finally you got your selected new employee and then she or he starts day one at nine o’clock and basically nothing is ready: They don’t have access to certain files, they don’t have keys to come into their office, they don’t have laptops, computers, mobile phones or whatever they need to be 100% productive at day one. All this because the process is not well organized. So that’s another process: employee onboarding! A third one is, for example, training new employees. They get their stuff needed to start working, but they need some on-the-job training. That’s where many companies miss again. They don’t have good training or the training takes too long or costs too much. So the new employee needs many weeks or even months to really get up to speed and understand the process they have to work on, the tasks they have to fulfill. So training is the third process that HR employees should work on and improve. How? With Lean Six Sigma.
Simplified Lean six Sigma
I teach a form of Lean six Sigma that you can use without being an expert in statistics. It comes down to using just 20% of those tools within Lean Six Sigma that will enable you to solve over 80% of your process problems. With this method everyone in your company can learn how to improve their work. Just imagine that your company, every department of your company, would continuously work on reducing lead times, reducing mistakes and improving the processes they are responsible for. That leads to cost reduction, that leads to efficiency improvement and that leads to operational excellence!
If you are interested in learning the basics of this method it’s very easy – I’ve written a book about it called Profitable Empowerment. So go to the website https://profitableempowerment.com. You can order the book there for free, you just pay for the shipping costs. In this book you can find everything you need to learn about the basics of the method and about the structure you need. You will need:
- a method
- organization structure to organize employee coaching within your organizational structure
- a routine to make sure you apply the method
If you are interested in the method, go to https://profitableempowerment.com and get my book for free.
So don’t only work on improving marketing and increasing sales, but also reduce costs by working on operational excellence. That is the beautiful way to reduce costs, because you will increase quality and efficiency and as a result you will get lower costs. So work on operational excellence if you don’t want to waste a lot of the money that you get in through your sales. You can start doing this very easily just by getting my book for free. Go to https://profitableempowerment.com