Business Excellence Blog

Nestle is a world leader in constant improvement and striving for excellence. And the Sderot site, with approximately 650 employees, is without a doubt one of their leading sites in all aspects. Nestlé's motto, which you'll find displayed at each one of their sites and to which everybody strives, is "0 waste, 1 team, 100% employee involvement".

Facit is a famous example, but there were others. A recent example from Israel comes from the world of cellular parking services. I heard it from Ro'ee Elbaz, Pango's CEO ever since it was a small startup of four employees. In 2007 a tender for cellular paying services for parking was published by the center for local government.

A few weeks ago I met with Rona, a brilliant entrepreneur, and we discussed setting up her business. Towards the end of our meeting I suggested that, alongside starting her business, she could also take over her accounts management. "Why?" she asked amazed. "That way you'll have better control of your expenses", I answered and added, "It's very simple, and will save you money too. When you have a small business it's important. "

The local market is growing more competitive and diminishing, customs defenses are disappearing and imports make sales harder. Both Gad and Shim'on have turned to exports. They don't only compete with each other, but with the global market.

As kids we played the game Telephone. We sat in a line, the first kid whispered something in the ear of the second, who whispered what they heard in the ear of the third, and so on until the last in line. Of course there was a considerable difference between what was originally whispered and what the last kid heard. That's how it is. There's a gap between what we thought and what we said, and an even greater one between what we said and what was heard and understood.

American companies reward participants based on how much money was saved for the company as a result of their proposal. The rewards average 458 USD. Comparatively, Japanese rewards average 3.88 USD (less than a hundredth of American rewards).

I used to manage an organization with several hundred employees, under a collective agreement. The premium paid to employees who exceeded production goal was set in the collective agreement, old an anachronistic. It wasn’t a real encouragement and it didn’t contribute to motivation, and didn’t change employees' way of doing their work. 

Israel added that Tomer was unwilling to teach other employees to operate "his" machine. It was clear that Israel postponed meeting Tomer as much as he could that morning, and once we finally got to him they communicated poorly. I couldn't understand what Tomer was saying and I'm not sure Israel clearly understood him either.

Our event focused on changing the production department and increasing efficiency. The team led a radical change in the department, including opening a wall which separated the two parts of the production space. On the third day, Osnat, one of the team members, burst into tears and couldn’t continue. She went home and returned to work only after a week of sick-leave.

I write a lot about getting employees invested, about efficiency, improved service, measuring indicators, and precision work with employees and clients. But if, at the same time, you have to lower prices in order to preserve clients in a competitive market, and to supply custom products to every client – you might find yourselves running fast in order to stand still. There's a danger that increased profit as a result of improvements in production will disappear compared to competition in the market, and at best you'll maintain low profit margins.