“Focus on the problem, not solution. You cannot quantify your way to the big max.” – Ola Sundell
I still remember when ‘lean’ was a buzzword in manufacturing industry years and years ago. Lean concept was originally based on production process optimisation principles invented in Toyota for automotive industry back in early seventies. Now the idea of lean has been turned into a workable philosophy in general management and other business arenas. Some time ago I was listening Ola Sundell, the CEO of Hub Helsinki, telling about the logic behind the lean market strategy. He gave a presentation in Laurea University of Applied Science based on the ideas of lean startup as an innovation method developed by Steve Blank and Eric Ries and his own experiences as lean entrepreneur.
Ola Sundell is explaining the essence of lean philosophy.
‘Lean’ is maximising value and minimising waste
The lean business culture have been evolving since view years aiming at solving business problems in the early phase of business set-up by using a service design approach. According to Sundell the startups mostly fail due lack of market and customers or because of a wrong mindset. Now lean thinking is challenging the old ways of thinking and doing. Lean startup methodology has evolved from customer development method highlighting the lean aspects of both product/service design and customer development. It focuses on customer value creation: everything that does not provide value for customer is considered as waste. By using lean startup methodology it is possible to maximise value and minimise waste.
As startups are considered being temporary project organisations creating new products and services under extreme uncertainty, it is learning that matters – and learning fast.
The process applied in lean startup methodology is based on a build-measure-learn cycle with six steps: What is built it based on a problem or solution hypothesis. Testing the idea is the intended learning step requiring the testing metrics to be defined. For generating metrics and testing hypothesis, the experiment has to be built.
Sharpening strategic sensitivity, building collective commitment and enabling resource fluidity are major guides to strategic agility. They give insight on all that need to be done to ensure that strategies are implemented to yield positive results. Sensitivity of organizations to changes around them is not enough to make them have a competitive advantage of their product/services over others. Other factors of consideration are as well required in order to make their strategies agile and these are listed below.
The term “Service economy” has changed the mindsets of companies’ strategic thinking in the 21st century. It reflects from the fact that in industrialized economies, manufacturers are focusing more and more on add-on services when trying to defend their business against the continuously growing service sector. Market is a battlefield and new challengers are entering from every corner.
Markets are changing rapidly and constantly forcing companies to challenge their existing business models. Today many of the startup companies are founded on the basis of innovative service concepts, aiming to create their own market and challenge the structures of traditional business competition. This blog post focuses on providing a strategic roadmap to startups on their journey to become a forerunner in service business. Continue reading →
We know your job as an executive is getting tougher and tougher no matter in what business you´re in. Operating environment is getting more and more competitive, fast based, complex, turbulent and blurry. You have probably noticed that the “old” way of thinking about the strategy and competitiveness won´t guarantee your organization´s success anymore. Strategy can´t no longer be done as a periodic planning exercise conducted in your organizations boardroom behind locked doors; planning for half a year, implementing for 3-5 years and then evaluating the strategy and building a new one – there is no time!
Say hello to agile strategic thinking! Through it, your organization is able to make fast turns and to transform itself without losing momentum. And we don´t mean simply adjusting to change, but thriving on the waves of change and becoming number one. Continue reading →
This is going to be an unusual day for you! Because you don’t start checking your emails or Facebook, or logging into your Skype, MSN or whatever instant communication system you use at work. But look over the edge of your coffee cup and dare to discover the possibilities in your daily routines.
You Are More Than Just You
Sometimes even the smallest matter can make a difference in your work or in your organization. Take the distance to see what your habits are, and then unlearn the bad habits. Easier said than done, but try to identify what you could do differently. This way you have more space to learn new things and new point of views. You are probably reachable online all your work day. But what if you change all that and take a small piece of the day and be offline. Take the time and fine tune the mindset. Think why you are working as you are? Why weren’t you part of the meeting, handling tasks which produce the upcoming tasks for you? Surely there could’ve been some input to be said. Maybe you have some new thoughts about the existing service offering? Be brave and act with courage. Who other than you and specifically why not you should stand out? Continue reading →
“The show must go on”, is a very common phrase in a show or performance. It means that the audience has to be kept entertained at all times. But, it doesn’t say what happens when the show gets old? How does a show performance keep selling tickets after repetitive shows and apply this phrase? But most importantly, how does the same performance creates new value for the same audience? In other words, no one wants to go to the circus twice to see the same show.
A circus for instance, would quickly run out of business if it the shows were constantly changing to keep spectators coming back. Renovation, show quality and improvisation could very well be a good description the main elements of circuses strategy. Their main objective it’s to give the audience value. Generate a positive emotional experience that is never to be forgotten, make them come back again and again. This is why the circuses still survive nowadays. Continue reading →