At some point, a business has to face the tough decision of scaling its operations. With the fast-paced nature of today’s market, improving efficiency and productivity is just scratching the surface of growth. While the “lean and mean” model has its merits, businesses are now shifting to a “smart and scalable” model to achieve success.
But first, what does it mean to be “smart and scalable”? This article explores this model in depth, and how the “lean and mean” model is becoming an outdated framework for forward-thinking businesses.
What Is “Lean and Mean?”
“Lean and mean” means achieving success by working efficiently and effectively. Essentially, a business following the “lean and mean” model creates customer value through the streamlined, waste-free production of high-quality goods (lean) — all while navigating and maintaining its competitiveness in an evolving market dynamic (mean).
In this model, “waste” includes anything that doesn’t add value, such as menial tasks, delays, surplus inventory, and defective products. By adopting a “lean and mean” model, businesses can:
1.Strive for Continuous Growth and Improvement
The “lean and mean” approach is grounded in continuous process improvement, one of the core principles of operational excellence. Business leaders who adopt this model don’t settle for mediocrity. Together with other employees, they actively participate in continuous improvement efforts, identifying inefficiencies in processes to produce higher-quality products and services.
However, just because bottlenecks are eliminated doesn’t mean everyone can call it a day. Growth doesn’t stop; it’s a relentless pursuit of excellence. A “lean and mean” business will continue to find ways to improve its workflow and offerings to deliver value to customers and stay ahead of the curve.
2.Create Value for Customers
The customer is central to the “lean and mean” business model. Businesses study their target audience, putting themselves in their shoes to have a better understanding of their needs, pain points, and expectations.
When organizations put themselves into their customers’ shoes, they can deliver value-driven products and services that meet those demands. This minimizes waste resulting from poor product-market fit.
3.Improve Customer Satisfaction
For “lean and mean” businesses, happy customers give them an edge over their competitors. These companies treat customers as collaborators, gathering feedback to meet their expectations and create room for innovation.
Because these companies treat customer satisfaction as a pinnacle of success, it serves as a springboard for seeking perfection and creating value. When customers are satisfied, they become loyal to the business.
4.Establish A Value Chain
The value chain maps out the activities, such as raw material sourcing and goods production, that aid in the creation of customer value. Through the “lean and mean” model, businesses continuously assess their value chain, optimizing processes to eliminate low-value activities.
5.Build Standardized Processes
The “lean and mean” model thrives in standardization and consistency. By having a standardized process, businesses can reduce waste and maintain the highest quality standards.
6.Avoid Overproduction
“Lean and mean” businesses rely on customer demand rather than projections. This helps them produce the appropriate amount of goods to avoid surplus and waste.
7.Minimize Costs
Profit is the foundation of the “lean and mean” model. “Lean and mean” businesses invest wisely, ensuring that every campaign or initiative translates to a positive and higher return on investment (ROI). This allows them to maximize profits while keeping expenses at a minimum.
Why the “Lean and Mean” Model Is Out
The “lean and mean” model shows promise for growth-minded businesses. It drives continuous improvement, encourages customer feedback, and promotes value creation. However, while it was implemented successfully by Toyota and Nike, this model presents businesses with several disadvantages:
1.There’s A Significant Financial Investment Involved
A business implementing the “lean and mean” model for the first time is a financial gamble. From investing in new equipment to overhauling processes from the ground up, this model requires significant financial investment that can strain a company’s budget.
If poorly implemented, this can spiral into inefficiencies and costly setbacks. For mid-sized companies with limited financial resources, the risk is greater (and costlier) if they fail to transition or the model does not deliver the intended results. This makes recovering a failed investment a burden for the whole company.
2.The Occurrence of Equipment Malfunction
There’s nothing wrong with refining processes to a t. But sometimes, things don’t go as planned. A malfunctioning equipment, for instance, can compromise operational efficiency and employee productivity.
This is where foresight comes in. If a business does not anticipate equipment failure or conduct routine inspections, processes will come to a halt — thereby affecting the entire workflow of the production floor. This leads to delays and poorer product quality, both of which dissatisfy customers.
3.Trouble With Getting Employees Onboard
Much as it is important to ensure alignment between employees, not everyone will be enthusiastic about change. Employees with limited knowledge of the “lean and mean” model may raise concerns about productivity — especially if they’re already used to their current workflow.
Such reluctance is understandable, as shifting to a new model entails dealing with feelings of uncertainty and overcoming a learning curve. Executives can hold meetings to convince employees, of course, but they should expect pushback.
4.Businesses Associate “Lean and Mean” for Layoffs
Companies may think that being “lean and mean” involves massive layoffs — which strikes fear in every employee’s hearts. While layoffs cut costs, this is not the best way to go about it. Improvements require team effort, and employees play a significant role in identifying workflow inefficiencies and offering valuable feedback.
Hence, it’s important for executives to establish trust and safety. If employees feel safe, they’re more likely to engage and improve the current system.
Why Smart and Scalable Is the Business Strategy of Tomorrow
Smart and scalable are two sides of the same coin; both are needed to achieve growth.
“Smart” can mean not just being efficient and maximizing resources, it also means leveraging advanced technologies to power through tasks. On the other hand, “scalable” means having the ability to grow — as well as overcoming challenges associated with scaling a business — amidst increasing workload and demand without deteriorating performance.
When smart and scalable solutions are combined, you’ll have a business that thrives and remains agile in evolving markets — ready to grow at scale. Here are reasons why smart and scalable is all the rage right now:
1.Smart and Scalable Businesses Embrace Technology
Advanced technologies, such as machine learning and artificial intelligence (AI), should not spell doom for your business. While the thought of AI replacing human employees is a valid concern, it’s how you (and your staff) use these tools to achieve operational efficiency, sustainable growth, and scalability.
Technology will not go away; in fact, it’ll continue to evolve to support complex business and customer needs. To power up your company with technology, it’s recommended to:
- Automate Workflow: Employees and leaders must take note of repetitive and mundane tasks that don’t add value to their day-to-day work. By automating low-value work, businesses can streamline their operations and reduce manual errors.
Automation also becomes especially handy when processing large data volumes, as it ensures accuracy and compliance. Consider finding tools with rules-based automation or automated task routing features to simplify workflow and task delegation.
- Integrate AI Solutions: Despite the ethical debate surrounding AI, we can’t deny its benefits in the workplace. For example, in customer service, AI can provide personalized, human-like responses to routine inquiries as well as retain past interactions. However, complex customer inquiries that demand higher-order thinking are assigned to human agents, allowing for empathic, nuanced responses.
In human resources, AI solutions can monitor the performance of all employees, extracting salient patterns to personalize professional development according to company requirements and individual performance.
Tech integration doesn’t need to happen overnight, though. Gradually introduce new tech to the team, and communicate your goals as well as the pros and cons of the technology you plan to implement. Encourage experimentation and get feedback to assess a tool’s effectiveness.
2.Smart Scaling Companies Take Care of Their Employees
Businesses that scale smart maximize everything — including employees. Employees are a valuable asset. From handling human resources to crafting marketing campaigns, they manage all the functions of your business to keep it running.
Because employees are the backbone of your company, you want them to stay. So, how do you make your employees happy and remain loyal to your business? Here are three ways to do it:
- Foster Career Development: Employees don’t want to stay stagnant. While a higher paycheck is a good motivator, they also crave purpose and fulfillment. Training program and open communication are a good start. Another way to keep employees engaged is to create opportunities where they are exposed to different tasks or job roles, helping them learn new skills and move out of their comfort zones.
- Make Employees Feel Valued: Employees deserve to be appreciated, too. Listen to their feedback and acknowledge their achievements. Likewise, promotions and bonuses can boost morale and motivate employees to perform better. By consistently showing your appreciation, your employees are more likely to feel engaged and find meaning in their work.
- Create A Healthier Work-Life Balance: Life does not always revolve around work. To establish a healthy work-life balance, you can offer flexible, hybrid, or remote work arrangements, establish clubs, and hold employee wellness programs — all of which help employees feel productive and make connections at work.
In sum, happy employees are productive and loyal. When you put employee happiness at the forefront of your workplace culture, you create high-performing teams that are committed to your business’s success.
3.They Build Scalable Teams
Smart scaling businesses treat scalability as an inevitable part of sustainable growth. Scalability enhances customer experience and increases profit. However, as your customer base grows and workload becomes heavier — scaling your team to keep up with demand is a great move. Here’s how to do it:
- Start With a Plan: Scaling efforts are a risk, but this risk only pays off if you plan well. Create SMART (Specific, Measurable, Achievable, Realistic, and Timely) goals and include detailed yet manageable action plans on how to achieve these goals.
- Be Transparent: Change, though inevitable, creates uncertainty. That’s why big decisions, such as scaling your business, require full transparency from your end. Communicate your goals as well as the impacts of your scaling efforts. By ensuring transparency, employees will have an objective, well-informed perspective about scaling, fostering trust and alignment within the company.
- Evaluate Your Workforce: Identify the strengths and weaknesses (including talent gaps) of your team. An objective assessment of your team uncovers blind spots, turning recruitment and resource allocation into a strategic rather than a haphazard effort.
- Get Hiring: Find candidates that align with your requirements and long-term goals. If recruitment efforts are hindered by a smaller pool of qualified candidates in your home country, consider hiring outsourced employees from the best BPO companies.
Outsourcing widens your talent pool, which means you can find the most qualified candidates faster than you would in your own country. Because outsourcing companies offer scalability as a perk, you can scale your team with confidence as labor costs are lower.
Overall, building a scalable team — especially via outsourcing — makes your company more adaptable to market changes, therefore positioning it for long-term growth.
Make Your Business Smart and Scalable With KDCI Outsourcing
Smart scaling is the goal. But in order to scale smartly, you must know your business inside out. This means acknowledging not just your strengths, but also your weaknesses — whether it’s the need for digital transformation or qualified talent.
Thankfully, outsourcing is the norm, and you can partner with KDCI Outsourcing to transform your business from inefficient and overwhelmed to smart and scalable. Here, we build scalable offshore teams for various job functions, including accounting, graphic design, and human resources.
As a company that monitors technological advancements in the outsourcing industry, we make sure to integrate the latest AI and automation tools into your workflow — so we can deliver the top-tier operational efficiency your company deserves.
Learn how to build a smart scaling business and unlock its full potential with outsourcing. Reach out to KDCI Outsourcing for a consultation today!
