Hi, guys. Welcome to Episode eight Defining the voice of the business. I'm Katherine ever and today we're going to go over the voice of the business or understand the voice of the business.
So we've talked quite a bit about the voice of the customer. But something that's important to bring to the forefront of your mind is you actually have two different types of customers. You have your external customer and you have your internal customer. And the thing is, is that the tools and the
resource is for gathering the voice of the customer
can be used for both. So what is critical to quality for your external customers and using that may also be critical to quality for your internal customers, and it may be very different, but the exercise to get there is still the same tool. So when we talk about those two types of customers,
the same gathering techniques apply where we want to make sure
that we are capturing their voice accurately so that we understand the needs from the business perspective.
The other part of that is when we talk about the waste of business, we frequently talk about it in the term of constraints. So overhead costs, production requirements, regulatory requirements. What are the things that we must have in order to be a business? For whatever reason, however,
there's another thing that's really important to talk about in the waste of the business. So,
my undergrad degree is in science. I was actually studying to be a physicist on one of the things that they talked to you about when you're specifically a physics major. I can't really speak for any of the other disciplines is he talk about how mathematics is the common language and mathematics is the unifying language. And
if you speak in the terms of mouth, everybody out there will understand you. So
you really want to get you want to get good at articulating your your statements in mathematical formula. So in business, there is also a common language and that commonly, which is money, but not in the
Kurt Lewin. A business exists to create profits for the shareholders, but just in a way that we can normalize our conversation so frequently, you will hear things discussed in terms of dollars when they're really actually using that as a normalizing factor for other things.
So an example for this would be, Let's say that I make $60 an hour
and I have a really, really successful lean Six Sigma project, and I increase my capacity by half by by 30 minutes on the way that I would report that, as a benefit is, I have increased my capacity by $30.
So we know that that dollar measurement applies to a time measurement, but it's awaiting normalize. So we
when we talk about that, it's because you can have overhead savings. So we have saved, you know, X number of dollars. In the bottom line, you can have capacity, which could be reported as dollars. You can have throughput, an inventory also reported as dollars. It's a really easy way to make sure that you are all speaking the same language,
and unfortunately or fortunately, depending on how you view it,
money does talk. It's really great weight. Articulate. This is a $20,000 process, versus this is a $2 million process, and you're going to want to have the biggest bang for your impact. So remember your prioritization make Tracy's from Yellow belt, and we'll talk a little bit more about him when we get to project selection, but you want bang for your buck.
So we want to normalize this and we want to discuss in terms of dollars.
We have a module on benefits and how we convert those into dollars. But even things like employee turnover. So employee turnover is reported to cost an organization about six months worth of profit to replace that employees.
So if you say Oh, yes, you know Bob is leaving, and that's really going to be hard on. Our department
is a little bit different than Bob is leaving, and it's going to be $50,000 in capacity in time to replace him. So these air, these are powerful statements and their normalized, so get comfortable having those types of conversations. It's not necessarily an A. We exist to make money money.
It's just in a way that we have a common language like a formula is to a physicist.
But so today we talked about the voice of the business exists. You gather at the same way you do for your voice of the customer and understand that your feedback that you're going to get and voice of the business is going to be related to money more than likely and B requirements. We must do this because of X.
It does relate very tightly to your non value add that we talked about. But these really are requirements and dollar amount will be the voice of the business.
So with that, we're going to define the voice of the process and our next video I'll see you guys there.