Part 3
What is it Really?
A faster and stronger continuous improvement loop allows your company to:
1. Identify risks (and opportunities) more quickly and effectively
2. Eliminate or control these risks more quickly and effectively
3. Ensure that processes, people and systems learn from these risks (and opportunities) and improve the company systematically
Examples of continuous improvement processes in your company may be quality assurance/quality control processes, inspections, safety audits, hazard assessment processes, etc.
These might not sound exciting or new but when done exceptionally well, can create an industry leading advantage.
The resulting improvement in safety and quality performance, for example, has an impact not only on the income statement of the company but also on the ultimate value of the company to its owners. Before we explore how direct the relationship is between continuous improvement and equity value, let’s assess your company to see where it is today.
The primary inputs into a strong continuous improvement loop are:
- People
- Processes
- Supporting systems to empower people and processes
