Non-Technology Improvement

An Embarrassment of Riches

The number and value of process improvements that do not require new technology routinely exceeds that of technology dependent improvements by a factor of 3 to 1* - sometimes more. Meanwhile, non-technology improvements require much less time to implement and yield greater returns in shorter time frames. That’s why The Lab focuses exclusively on non-technology, or technology neutral, improvements.

Non-technology does not mean “anti-technology.” Streamlining your business processes almost always helps your technology projects run smoother. Frequently, the non-technology improvements generate such a large savings that these can fund, either partially or totally, your company’s technology-based initiatives.

*Based on The Lab’s survey of over 200 internal improvement initiatives at Fortune 500 companies.


Non-Technology Improvements

Numerous, Overlooked & Similar

Numerous:

Non-technology improvements and benefits typically outnumber technology-dependent improvements by a 3 to 1 margin.

Overlooked:

Internal teams overlook 5 out of 6 non-technology improvement opportunities – untapped benefits.

Valuable:

Non-technology improvements deliver 10-25% sustainable labor savings and revenue productivity gains.

Near-Term:

Almost all non-technology improvements can be implemented within six months or less.

Similar:

Non-technology improvements have similar “root causes,” improvement plans and benefits – a valuable opportunity for standardization.

See results. View our Case Studies.


“Class I™ Improvement”

The Lab’s term for non-technology reduction of widespread root causes that erode value in multiple categories including:

  • Rework
  • Sales “Downtime”
  • Customer “Over-Service”
  • Management Intervention
  • Excess Cycle Time
  • Error Correction
  • Wrong Priorities

“Non-Technology Methods”

The Lab's approach incorporates the most effective and proven non-technology improvement methodologies:

  • Six Sigma
  • Lean Improvement
  • Lean Six Sigma
  • Kaizen Methods
  • Total Quality Management
  • Quality Function Deployment
  • Voice of the Customer
  • Many More...

Improvements by Technology Dependency

Improvements by Technology Dependency Pie Chart

Template-Based Advantage

Stop Re-Inventing the Wheel

Our proven template-based approach drastically reduces the time required to identify and implement the most valuable improvements, whether it is for a single business process or enterprise-wide operations.

More Templates = Less Time

The Lab's template-based approach makes rapid, large-scale, activity-level improvement feasible by capitalizing on similar, recurring opportunities. These templates also reduce the time required from clients to develop findings and documentation. In short, our templates apply the power of the learning curve to your business improvement efforts.


Template Definitions

The Lab's Six Categories of Improvement Templates

We define “templates” broadly, ranging from business process maps through implementation work plans.

Icon Business Process Map Templates

The Lab maintains activity level business process definitions for more than 200 standard, organization-based processes and over 1,000 for industry-specific processes.

Icon Improvement Opportunities

The Lab documents and catalogs thousands of commonly recurring, activity-level improvements.

Icon Best Practices

Use The Lab’s Best Practices to evaluate your operational capabilities. Go “out-of-industry” for valuable, leading edge practices.

Icon Benchmarking & Metrics

The Lab has over 4,000 quantitative measures [metrics] covering processes, operations and organizations.

Icon Capacity Models & Forecasting Tools

These quantitatively link work activities to volumes, input and other key performance indicators to forecast resource needs and track productivity.

Icon Implementation Work Plans

Standard work plan “modules” define implementation tasks, time frames, and milestones. Plans are “configured to order” to meet individual client needs.


Templates are Maintained in Two Major Groups

Organization Based

Broadly applicable to many companies and industries.

Support Groups:

  • Finance
  • Human Resources
  • Marketing
  • Information Technology
  • Corporate Services
  • Shared Service Centers
  • Compliance/Audit
  • Legal
  • Internal Improvement Teams

 

Line Groups:

  • Field Sales & Support
  • Customer Services
  • Contact Centers
  • New Product Development
  • Post-Sales Services

Supply Chain Operations

  • Order Management
  • Master Data Management
  • Procurement
  • Materials Management
  • Production
  • Distribution
  • Quality Management

Industry Based

Operations which are unique to particular business segments and industries.

Services Industries:

  • Financial Services
    • Insurance
    • Banking
    • Broker/Dealer
    • Investment Management
    • Consumer Finance
  • Media Services
    • Broadcast
    • Newspapers
    • Digital
    • Magazines
    • Books
  • Information Services
  • Health Plans
  • Telecommunications
  • Utilities

 

SUPPLY CHAIN INDUSTRIES:

  • Pharmaceuticals
  • Chemicals
  • Food Production/Processing
  • Paper/Packaging
  • Industrial Products/Appliances
  • Technology
  • Print and Mail
  • Consumer Packaged Goods
  • Retail and Distribution
  • Oil and Gas
 
To learn more about our templates, visit OpsDog.com

Our Self-Funding Guarantees

A Risk Free Approach

“Self-Funding” means that the value of the improvements is greater than the cost of implementation. In fact, it is typically many times greater. Each step of the Lab’s standardized project plan is designed to pay for itself – often in six months or less.

The Lab analyzes operations and develops a self-funding implementation plan in eight weeks or less. Once implementation begins, financial break-even is typically achieved in six months.

The Lab’s “templatized” approach is so predictably effective that we provide money-back guarantees ensuring that all of our work is self-funded and that our clients are completely satisfied. Since The Lab opened its doors in 1993, we have never failed to achieve self-funding on any of our projects. Our work always pays for itself several times over.


The Lab’s Philosophy: Eliminate Risk to Clients

The Lab’s fixed price proposals, checkpoints and self-funding money back guarantees deliver project designs that greatly reduce risk to clients.


Fixed Price Proposals

The Lab’s proposals are based on our labor costs and include all document production expense, based on our standard templates.

Two-Week Checkpoint

During the first two weeks, clients may cancel the effort for any reason and receive a full refund [less travel expense incurred].

Self Funding Validation Point

If The Lab discovers that a self-funding improvement opportunity is unlikely to be developed, we will notify clients prior to the end of week number three, and a full refund will be issued.


Guaranteed Results:

The Lab's two-phased approach completes self-funding business improvement™ from start to finish within five to eight months - guaranteed.

Phase I Guarantee:

The Lab will deliver a set of "quick hit" Class I improvements with financial benefits that exceed the Phase I fees and expenses and can be implemented by client staff without assistance from The Lab.

Phase II Guarantee:

If an improvement program we implement fails to deliver saving at least equal to our fees in the first year, The Lab will continue working without charge until it does, or refund the difference.

Ready to get started? Improve now.

The Lab's Projects Typically Self-Fund in 6 Months

Project Self-Funding Graph

Virtuous Waste

Improvement Hiding in Plain Sight

virtuous waste: /ˈvər-chə-wəs wāst/ noun
1. Intangible waste disguised as good, honest, work effort

Virtuous Waste consumes 25-40% of organizational capacity in rework, distorts perceptions of customers and markets and impedes sales and service performance. If your company's improvement teams have not yet found all of these improvements, don't be discouraged; even the best internal teams typically find only 20%, or fewer, of these opportunities. That's because Virtuous Waste improvement poses major challenges to conventional improvement tactics. The Lab's tactics avoid these pitfalls to help improvement teams uncover 4 to 5 times more non-technology [Class I™] improvements.


Conventional Tactics:

Reduce Tangible Waste

  • Scrap
  • Returned Goods
  • Idle Time
  • Excess Inventory
The Lab's Tactics:

Targets Intangible Waste

  • Operational Rework
  • Customer "Over-Service"
  • Sales "Downtime"
  • Ad-hoc Reporting

Capitalizing on the Virtuous Waste Opportunity

Activity Improvements In each job position

challenge

The Challenge

Virtuous Waste tasks are embedded within each job position, but activity-level improvement is impractical and uneconomical because it is time-consuming and difficult to identify.

  • Low visibility of waste
  • Time-intensive "fixes"
  • Fractional savings:
    "arms & legs"
Organizational Capacity Cumulative Impact

reward

The Reward

Virtuous waste consumes 25-40% of organizational capacity in rework; distorts perceptions of customers; impedes sales and service performance.

  • Operational rework
  • Sales "downtime"
  • Customer "over-service"
Recoup and Redeploy Capacity Model Needed

solution

The Solution

The Lab's capacity model templates quickly and economically recoup half or more of this organization-wide wasted effort.

  • Non-Technology [Class I]
  • Six month implementation
  • Self-funding [guaranteed]

The Lab's Tactics Identify more "Virtuous Waste" Opportunities

Conventional Tactics:Analyze Issues

1. Issue Based Scope
  • Select Issue(s)
    • Process
    • Technology
  • Limit analysis to selected issue
  • Labor analysis is “piecemeal”
2. Multi-Focused Teams

Teams pursue all improvements:
technology, non-technology, stategic.

3. Macro-Targeted
  • 10 - 20 improvements
  • Each: High risk/payback
  • Technology-driven (90%)
  • Long term (>12 mos.)

The Lab’s Tactics:Analyze Work

1. Organization Based Scope
  • Select Group (head count)
  • Comprehensively analyze:
    • Job postitions (labor)
    • Business processes
    • Capacity Utilization
2. Single-Focus Teams

Dedicated teams pursue only non-technology improvements.

3. Micro-Targeted
  • Hundreds of improvements
  • Each: Low risk/payback
  • Non-technology (all)
  • Near term (>6 mos.)
See results. View our Case Studies.

Your Priorities Are Our Priorities

Client Prioritized Project Plans

The Lab works with existing internal improvement teams and project sponsors to prioritize improvement opportunities and project objectives based on senior management’s areas of concern, or “red issues.” Once these red issues have been defined, we work side-by side with the client to determine the most frugal, cost effective analytical "foot print" and design a self-funding project proposal document. Once this proposal is approved, The Lab can typically begin Phase I within two weeks.

The Lab's deceptively simple strategy enhances the ability of existing internal teams and creates confidence and cooperation within all levels of the organization.


Most Internal Initiatives are Late and Over-budget with Low ROI*

> 85%: Non Technology improvements overlooked.
> 65%: Initiatives at least 30% off schedule AND over budget by a minimum of 30%.
> 75%: Initiatives achieving less than 20% of planned benefits.
9-12 mos: Average time that these shortfalls remain “hidden” from senior executives.

The lab can change this in 8 weeks or less.

*Based on The Lab’s survey of over 200 internal improvement initiatives at Fortune 500 companies.

The Lab’s Two-Step Project Approach:

Phase I: Analysis & Design [Duration: 6-8 weeks]

This phase is the business equivalent of a wall-to-wall X-Ray or CAT Scan of operations. It rapidly documents end-to-end business processes at an activity-level of detail, creating an unprecedented, consensus-driven, fact-based view of improvement opportunities. Combined with the ledger-line detail of the business case, the Phase I findings and documentation create an almost irresistible, organizational groundswell for action and change.

Phase I Objectives:

Analyze operations, identify improvements, quantify benefits, develop a self-funding implementation work plan.

  • Develop an improvement business case
    • Ledger-line-item financial detail
    • Work-group-level operating metrics
  • Draft an implementation work plan
    •  Immediate, self-funding, non-technology
    • Client-prioritized, multi-objective
  • Deliver supporting documentation
    • Process maps, "Current State"
    • Benchmarks, best practices, improvement opportunities

During Phase I, activity-level improvements are combined into key opportunity groups then developed into a client-prioritized implementation plan for Phase II.


Phase II: Implementation [Duration: 4-6 Months]

The Lab’s implementation methodology resembles an engineering or construction project more than a conventional management consulting engagement. Operational ‘change orders’ [or, PIRs] help rapidly align hundreds of activity-level tasks with customers’ top priorities and the most valuable sources of revenue and margin. Lower value tasks are eliminated or reduced. Just like a construction project, the progress is tangible and measurable, day-by-day.

Phase II Objectives:

Implement operations improvements, achieve payback and document ongoing benefits.

  • Launch "Immediate Action" improvements
    • Simple process change
    • Lead time: 6-8 weeks
  • Complete "Secondary Action" improvements
    • Complex process change, capacity modeling
    • Lead time 3-6 months
  • Implement organization redesign
    • Job position redesign
    • Skills realignment, redployment
Download our “Start to Finish” Project Time Line.