A blog for Entrepreneurs...and especially Lean Entrepreneurs.
I've been thinking about Michael Gerber's book, E-Myth Revisited. I also listened to him speak in St. John's, Newfoundland, last week. His overriding message is "work on the business, not for the business".
In other words, work on developing the business, do not immerse yourself in the day-to-day activities of the business. The bottom line is that every successful business contains as much value in the process as in the people. As the entrepreneur, you create the team, you lead the team, and you guide the team to create the process.
Of course without the right people, it is next to impossible to accomplish this. The staff and the culture play as important a role as any other aspect of the company's personality. In the end, the team owns the process as much as anybody. So we are not robots....but...
The truly successful business is defined by the ability for any staff member to be able to do their job exactly the same way that the previous staff member completed the same job...same as the person on holiday, or the person out sick, or the person on the other shift. Who completes the work and when should be of no consequence or concern to the customer.
So according to Michael Gerber, a successful entrepreneur is one who creates a business and creates a process for the business to run predictably, in a repeatable and reliable fashion. The successful entrepreneur is one who will spend the majority of time developing the system, and less time working within the system.
Well I say that the successful entrepreneur is a Lean Entrepreneur. And I do not necessarily mean that a successful entrepreneur uses Lean techniques throughout their day....I mean that the successful entrepreneur is focused on Lean. A successful entrepreneur creates a business that lives and breathes the 5 principles of Lean.
1. Identify the value.
2. Map the value (process).
3. Create flow (smooth and reliable, predictable, repeatable).
4. Create pull (don't over-produce).
5. Continually improve.
Any great Lean company does excactly what Michael Gerber recommends...and more...but let's keep to what Michael Gerber is talking about.
Let's think about what Mr. Gerber says to focus on. Focus on process. Focus on repeatability, predictability, reliability. Do not work within the system, work on the system. Yes...go to Gemba...but give the "doers" the power to help create, control and maintain the system.
Everything within Genoa Design, my company, is centered around an engineering process. All designers doing the engineering tasks exactly the same way every time. Sit two people side-by-side and what will you see? Identical process.
This is what makes a company valuable from an entrepreneur's perspective. Once you know the staff are doing their jobs every time, exactly the way they said they would do it, then you, as the entrepreneur, have the freedom to focus your energy on other things business.
Like getting more business, like continually improving, like creating more processes, like growing the business, like planning the next party for the staff!
What can separate you from the competition? How about the other 4 Lean principles?
Is there much difference between Michael Gerber's smart entrepreneur (one who get's it) compared to a Lean Entrepreneur? Well... the Lean Enterpreneur has another toolbox full of tools that can be used to continually improve the business. But the start point is the same.
Funny how all these cutting-edge thinkers are all singing the same song....maybe it is because they are right?
If you are an entrepreneur, visit Michael Gerber's website http://www.e-myth.com/
If you are further interested in Lean, start with http://www.lean.org/
