In Their Own Words

Myth of the Bottom Line: Boosting Lean with Deming (Part 3)

Sep 23, 2024
In this discussion, Jacob Stoller, a Shingo Prize-winning author and expert on Lean management, delves into the myth that financial metrics alone reflect organizational productivity. He stresses the importance of non-financial factors and critiques traditional accounting methods. Stoller emphasizes the disconnect between executives and operations, advocating for a holistic approach to productivity that fosters collaboration and long-term success. He also shares insights from a high-performing factory, highlighting the value of team responsibility and transparency.
Ask episode
AI Snips
Chapters
Books
Transcript
Episode notes
INSIGHT

Myth of the Bottom Line

  • The "myth of the bottom line" assumes financials reveal all about productivity.
  • True productivity involves non-financial factors, like process improvements, not just dollars.
INSIGHT

The Black Box of Operations

  • Executives often view operations as a "black box", relying solely on financials.
  • This overlooks the complex interplay of factors within the "black box" that drive true productivity.
ANECDOTE

Revenue Increase Through Pricing

  • One company increased revenue by 20% solely through price increases, not improved operations or productivity.
  • This unsustainable approach highlights the importance of genuine productivity gains.
Get the Snipd Podcast app to discover more snips from this episode
Get the app