In Lean Marketing Waste should Appear, not be Found


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This is document explaini the key components of Lean Marketing

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In Lean Marketing Waste should Appear, not be Found

  1. 1. Business901 Implementing Lean Marketing SystemsIn Lean Marketing,Waste should appear, not be Found! In Lean Marketing, Waste should appear, not be Found! Copyright Business901
  2. 2. Business901Implementing Lean Marketing SystemsIn Lean Marketing, Waste should appear, not be Found!Many people believe that to apply Value Stream Marketing usingLean Techniques is about removing waste. Eliminating waste isone of the Guiding Principles of Value Stream Marketing but youmust make some fundamental improvements in your marketingcycle before a pull marketing system will work.Value Stream Marketing (VSM) is about having a minimumamount of Work in Process (WIP). However, you cannot just wakeup one morning and decide to do it. You cannot just removemarginal leads or work with only higher valued leads. It’s about ajourney versus the decision to reduce your WIP. Managing yourWIP will make you aware of many wasteful processes and as aresult provide opportunity to remove them. In VSM there are fourcritical components that you must understand: Protect Sales,Reduce your WIP, Improve your Cycle Time and Remove waste.Protect Sales: Most of the time when an organization seeks toimprove their marketing the central message is creating moreprospects or more WIP. Seldom does that work. Filling thepipeline creates more WIP which creates more work and reducesyour effectiveness and productivity. You end up with the wrongpeople doing the wrong thing at the wrong time. This is theessence of overproduction.The first step is to distinguish how your sales, prospects areentering the pipeline. That should be fairly easy to distinguish.However, it may result in a very long list. Try to get a handle onthis and group them according to your existing marketingchannels. Take an empirical view of this.The next step is where most of the problems occur. Oncesomeone is in a pipeline all kinds of things happen and it’s hardto be certain what took place to have them come out the otherend as a customer. The second step is understanding your In Lean Marketing, Waste should appear, not be Found! Copyright Business901
  3. 3. Business901Implementing Lean Marketing Systemsmarketing cycle and putting it in a meaningful value stream. Youmay only understand a portion or a percentage of it; the rest maybe so unpredictable that you cannot even venture to guess.Listing the process steps of your marketing stream will allow youto start noticing conversion rates, constraints and variation.However, to start managing sales you have to start measuring itin a meaningful manner. The third step is measurement. If youcannot measure something the old story is don’t do it. In thesales and marketing process at this point we are not asking youto change anything just list it so that we can start observing andtry to apply measurements to it.Many times you will be able to identify a small percentage ofprospects/channels that contributes to the majority of your sales.This is the value stream that you should concentrate your effortsand improve upon. It typically is the best known and easiest toidentify (wonder why?).Reduce your Work in Process (WIP): After you havedetermined the steps of your marketing cycle this becomes yourValue Stream. Typically, you will have more than one. At thistime is when a Marketing Kanban comes into use to visualize theflow and the WIP. Create a Kanban for each Value Stream thatyou can reasonably map.In this way visualizing the process step by step will improve theoverall system performance. I like the visualization trick ofthinking about lowering the water in the river. When you do therocks will appear and it will be easier to navigate around them.The larger rocks may be prospects that you have not adequatelydefined a solution or your product is not a perfect fit. Other rocksor channels may have too many hidden cost or layers ofdistribution. There can be numerous areas of concern butmapping them brings the rocks to the surface so that they are In Lean Marketing, Waste should appear, not be Found! Copyright Business901
  4. 4. Business901Implementing Lean Marketing Systemsnoticed. By the way, you may have a couple of channels thathave no rocks appearing at all.Don’t be worried about producing too many Value Streams, wecan combine a few later or decide not to manage certain ones.The different channels create a lower level of flow (wider river)and more rocks to appear. It also identifies and reduces variationwhich just about always is the reason people believe it will notwork. This is similar to the concern many manufacturingcompanies have about reducing batch sizes to gain continuousflow. Defining the exact Value Stream will be the single mostimportant factor in increasing flow and reducing your WIP.Reducing your Work in Process requires that it becomes aphysical process. You must put real numbers and real events onyour Kanban Board. The measurements that you determined inProtect Sales become real. Your direct mail pieces may be onlybringing a 3% response. The Auto-responders may be convertingonly 10% of your prospects into attending a webinar ordownloading an eBook. As you visualize the process try to get afeel for the pace and look for missing areas. A Value StreamMapping trick is to chunk certain areas of the Value Streamgrouping them. This will help you assign responsibilities and findmissing or extra steps in the process. This is also a great time toremove a little of the low-hanging fruit. However, this is not thetime for wholesale changes this is a time for you start gainingknowledge that you did not have before.This is actually your first step in developing a pull system. Youwill start seeing overproduction or bottlenecks and on the flip sideyou will see where you may be starving a resource. This is thetime that you will get a feeling of what leveling and pace is allabout. Many times you can identify these areas of concern andlimit or re-channel incoming prospects into underutilizedresources. Further defining your steps and more specifically In Lean Marketing, Waste should appear, not be Found! Copyright Business901
  5. 5. Business901Implementing Lean Marketing Systemscreating a Kanban board will help you see that next step. Thatphysical point of a handoff or a transaction to that next step isvery important. With hardly any effort at all you begin creating apull system and leveling the demand.Improve the Marketing Cycle: Improving the Marketing cycleis where the fun really begins. By protecting sales and reducingyour WIP you have only made minor changes other thandiscovering what makes your marketing process flow. Developingyour Marketing Kanban has allowed you to sort out variation anddiscover over and underutilized resources. Visualization of yourmarketing cycle has hopefully allowed you to remove some of thelow hanging fruit, I actually hate that term.Most people will have you take your Value Stream mappingProcess and create your Kanban board. What I explained in theReduce your WIP section is to create a simple flow diagram with aKanban. Why backwards, I find most marketing people aresomewhat intimidated by Lean Tools of mapping and can readilyidentify a Kanban board. Creating that structure and working withit to provide flow makes the transition to a Value Stream Mappingproject much easier. Using the Kanban, you have created aCurrent State Map with the metrics you need to develop a FutureState Map. The outline I use for creating a future state:In the book,Value Stream Mapping for Lean Development: AHow-To Guide for Streamlining Time to Market, Drew Locherexplained how to create a Future State Map by utilizing sevenbasic questions:  What does the customer really need?  How often will we check our performance to customer needs?  Which steps create value and which steps are waste?  How can we flow work with fewer interruptions? In Lean Marketing, Waste should appear, not be Found! Copyright Business901
  6. 6. Business901Implementing Lean Marketing Systems  How do we control work between interruptions, and how will work be triggered and prioritized?  How will we level the workload and/or different activities?  What process improvements will be necessary?Drew goes on to conclude that future state mapping is not abrainstorming session. He likes to use a key ground rule of 70%.If the team believes that they have a 70% chance ofimplementing a particular idea in less than one year, it could beincluded as part of the future state. If it is longer, the entireimprovement effort would suffer. These specific improvementefforts will be depicted in a value stream map by the use of aKaizen Burst icon.When considering how to use value stream mapping in themarketing process I think the seven questions provide anexcellent base for walking through the process. You have toremember, you already have a current state map drawn. Inessence what you are trying to do is to move not only currentstate to future state but from an internal perspective to anexternal perspective. Your customer should be determining yourvalue stream.I believe this is the best way to improve your marketing cycle.Taking each channel or swim lane on your Kanban board one at atime and mapping the process will give you the best results. Aftercreating the Future State Map move the process back to theKanban board for execution.Remove Waste: Contrary to a whole lot of Lean folks, I believewaste is an afterthought in Lean. After you Protect Sales, ReduceWIP and Improve your Marketing Cycle, waste will appear, andappear again, and again. When it seems like low hanging fruitremove it, but not before. Your challenge is not removing wastebut increasing flow, reducing variation and creating reliability. In Lean Marketing, Waste should appear, not be Found! Copyright Business901
  7. 7. Business901Implementing Lean Marketing SystemsUltimately you will find waste in the number of prospects withinyour marketing cycle, your WIP! The more WIP (more inventory):the more variation and less reliability you have will cause areduction of flow. Forecasts will be off or non-existent eventhough we will have a considerable number of prospects. Startfocusing on your lead times and waste will disappear.If you don’t believe me and you still want to get rid of somewaste here is my stab at it. The seven types of waste inmanufacturing are well known: overproduction, waiting,transport, extra processing, inventory, motion, and defects.The seven types of waste for marketing streams are: • Overproduction as a result of too much work in process • Waiting as a result of poor flow and lack of leveling demand. I discourage the concept that we should not have slack in a system and idle time. • Complexity poor scheduling systems that prevent flow • Extra Processing responding to the marketing idea of the week. . • Poor Handoffs are created as you move from one step of the process to another. This results in delays and incorrect information. • Inventory is to much Work in Process(WIP), you can have too many leads. • Push Marketing pushing marketing processes and material onto prospects and customer that are not asking for it.As mentioned before these concepts should become apparent asyou work through the three preceding steps. Value StreamMarketing is not about removing waste as the first step. It isabout creating awareness of each value stream so that you candetermine the value of your marketing from the customers’ pointof view. In Lean Marketing, Waste should appear, not be Found! Copyright Business901
  8. 8. Business901Implementing Lean Marketing Systems Joseph T. Dager Lean Six Sigma Black Belt Ph: 260-438-0411 Fax: 260-818-2022 Email: Web/Blog: Twitter: @business901 What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joes ability to combine his expertise with "out of the box" thinking is unsurpassed. He has always delivered quickly, cost effectively and withingenuity. A brilliant mind that is always a pleasure to work with." James R.Joe Dager is President of Business901, a progressive company providingdirection in areas such as Lean Marketing, Product Marketing, ProductLaunches and Re-Launches. As a Lean Six Sigma Black Belt,Business901 provides and implements marketing, project and performanceplanning methodologies in small businesses. The simplicity of a singleflexible model will create clarity for your staff and as a result betterexecution. My goal is to allow you spend your time on the need versus theplan.An example of how we may work: Business901 could start with aconsulting style utilizing an individual from your organization or a virtualassistance that is well versed in our principles. We have capabilities toplug virtually any marketing function into your process immediately. Asproficiencies develop, Business901 moves into a coach’s role supporting theprocess as needed. The goal of implementing a system is that the processeswill become a habit and not an event. Business901 Podcast Opportunity Expert Status In Lean Marketing, Waste should appear, not be Found! Copyright Business901