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FLF, LLC

Ep. 163 - When Operations Doesn't Serve the Customer [Business 300]

FLF, LLC

FLF, LLC

News

4.6949 Ratings

🗓️ 24 February 2025

⏱️ 5 minutes

🧾️ Download transcript

Summary

In delivering value, Operations must hold the customer as the definer of what is right - right quantity, right quality, right timing - and then structure the systems accordingly. The customer, the business, and the operations function itself loses when Operations doesn't serve the customer.

Transcript

Click on a timestamp to play from that location

0:00.0

Hello and welcome to Business 300. My name is Philip Kulenshov and this is 300

0:11.9

seconds about business. We're all a busy people, so I have five minutes or less to get my point across.

0:23.3

Let's get this done.

0:26.3

We're talking about your business serving the customer.

0:30.5

In order for your business to serve the customer, every function must be serving the customer.

0:33.2

None of the business should be internally focused.

0:38.4

Strategy, sales, operations, administration, and finance all need to focus on serving the customer.

0:40.7

It's all about the value being offered.

0:45.5

When the functions of a business start by being focused on serving the business, the business loses.

0:46.4

I talked about how strategy needs to focus on creating value for the customer instead of creating

0:50.6

value for the business, and how sales should be aiming to promote value to the customer instead of growing the revenue.

0:56.7

When either of those functions start at the wrong end, they lose the customer and, as a result, lose even what they think they should be aiming for.

1:03.8

But when they focus on serving the customer through value creation and value promotion, accordingly, they win the customer while creating value and

1:12.0

growing the revenue as a result. The starting point matters. The same thing can be said

1:17.0

about the operations function. The point of operations is to deliver value. The value that

1:22.0

strategy creates and sales promotes operations delivers. The focus is on value delivery. But what does that mean? Is that just a

1:28.7

fancy way of saying doing the work? Not exactly. We're business people, not politicians. Specifics

1:33.9

matter. Value delivery means three things. Quantity, quality, and timing. When focusing on value

1:40.3

delivery, the operation functions needs to focus on the right amount of right parts

1:44.8

at the right time. These three metrics can be summarized in one word, throughput. Throughput

1:50.4

incorporates shipping the right amount of right parts of the right time. And the question

1:54.6

is who defines what is right? Who gets to say what the right amount of parts to make? Who

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