No Ceilings

Inside the castle of Cesky KrumlovAs leaders, our perspective has a significant influence not only on our approach, but also the efforts of those around us. When we run into a daunting challenge, do we look for ways to minimize our risk or maximize our gain? A power point I ran across this week put it this way: “There’s a floor to cost reduction but no ceiling to value creation.”

No ceiling to value creation . . . what a great lens through which to view the challenges and opportunities before us! How often do we respond to the roadblocks we encounter by immediately slamming on the brakes? Cut, reduce, minimize our losses and avoid future risk. Yes, as leaders we have to be good stewards and fiscally responsible, but do we stop to consider that there may be multiple ways to manage the bottom line while also expanding the top line?

What if our first question when we collide with a roadblock was to ask how to raise the ceiling on our value proposition? Isn’t that what Lean Principles are all about? Creating more value and, yes, eliminating waste . . . but maximizing value for your efforts is at the heart of Lean. How many leaders never even consider a path to value creation because they have a scarcity mentality? They instinctively reduce and withdraw, and in so doing eliminate the very path that could have led to greater value and financial sustainability.

How does a leader eliminate the ceiling on value creation? Certainly it is important to explore opportunities for efficiencies and economies of scale. However, just as there are limits to cost reduction, there are limits on how efficient you can become at a specific task. The question then becomes, is there a better task on which to focus your efforts? And the answer to that question is . . . Yes! Focus your efforts on innovation!

If a leader truly wants no ceiling on value creation you have to not only allow but encourage sky-is-the-limit, “in a perfect world” thinking (no ceilings, right). So often, right out of the gate, we frame our thinking with barriers . . . “They would never” . . . “It’s not practical, but” . . . “It would be cost prohibitive, however . . .” Feel that floor looming?

What if, instead of focusing on what we can’t do, we identify the most amazing, creative way to add value and then focus on figuring out a way to do that? I’m not suggesting you disregard your budget, or that you will automatically get there overnight. I am saying that when people are passionate about value creation . . . when innovative thinking is encouraged . . . they find a way.

Where do you start? No ceilings.

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