GOING LEAN AND GREEN FOR A BRIGHTER FUTURE
There is no denying that it has been a turbulent few years for businesses across every sector with Brexit and then the Covid 19 Pandemic putting unprecedented obstacles in the path towards financial and company success, while the troubles in Ukraine also caused problems with supply chain issues and rising costs.
But despite these issues, many new companies were formed over the past few years, while established firms weathered the successive storms - some pivoting and emerging stronger in a new guise, others sticking to what they do best and experiencing post pandemic success, while some took the digital route and are now enjoying a new online presence.
Indeed, there have been many success stories of companies averting crises and surviving challenges, but some smaller businesses may have found it more difficult to weather the various economic storms.
However, help is at hand and there are ways in which Local Enterprise Offices can help micro firms to make simple changes which can have a big impact on their business.
John O’Shanahan, managing director of LEAN BPI is an expert in this and his work involves coaching LEO clients on ‘how to obtain exceptional performance through lean tools, principles, and adopting different management approaches’.
Working with various Local Enterprise Offices on the Lean for Micro programmes since delivering the Pilot Lean for Micro programme in 2015, John has worked with more than 200 LEO clients around the country on their improvement journey. And in recent years, have specialised in Digitalisation for small business and have leveraged this experience to support the roll-out of the Digital Start pilot in 2022.
O’Shanahan says his role is to help companies improve their business ‘by helping small businesses implement change and develop a business improvement culture’.
And while many companies have already benefited from using this approach, he says that now is the time to look focus on digital.
“Our role with the LEOs is to help clients to improve their business performance and to adapt Lean thinking, which can be simplified into what you do, how you do it and how you can make it better,” he said. “These include the standard principles of giving value to your customer, reducing waste and striving for perfection. But now we are seeing opportunities for the digital side of the business to contribute to the Lean agenda and to help companies become leaner - in fact, if we don’t involve digital in the process, we would be leaving out whole sections.
“So we’re adapting a very contemporary Lean approach where we use digital tools to fulfil the agenda as we try to achieve a number of things such as working more efficiently, cutting off waste, improving customer value, management results and the performance of the business and reducing stress. Digitalisation is a fantastic way to achieve all of this in a small business because you can combine the traditional Lean approach with modern digital tools.”
O’Shanahan says that digital solutions can be off-the-shelf or bespoke to individual clients’ needs and this can make all the difference to small companies.
“Big companies have lots of departments and people to assign different projects to, but in a small firm, the owner or manager has to deal with lots of different issues simultaneously,” he said. “So when it comes to making a micro business more efficient, a customised solution is often needed as they don’t want to make too many changes at the one time - these could involve how they take orders, send out quotes or record their time and we can help them to achieve results faster and more effectively by applying digitalisation.
“So when we are talking along with the LEOs to companies about improvement, if we can see an opportunity to go digital, we will. We have had very positive feedback so far and many company owners have been energised by either the project they are working on or as a result of changes in performance and mindset which they have achieved through a particular project.”
The Limerick-based expert says that although some people may be reluctant to go down the digital route as they are wary of technology or change, all it takes is a bit of positivity and an open mind.
“Some people believe they are not technically savvy,” he said. “But many others refuse to see it as a barrier as they managed to figure out how to use their new TV or all the various apps on their phone - so having an open mindset is the way to learn and achieve new things. Also some will be put off by other barriers which exist in a micro business, including fear of failure, perceived cost and time spent training staff - these are all seen as inhibitors. But to balance this out, there are enabling factors which include training programmes, mentor support, peer networking and having an open mind.
“We can tell people about digitalisation but they need to experience it for themselves as it’s a bit like teaching someone to drive - it’s all very well learning how it is done, but unless you get behind the wheel, you won’t be able to master it. This is why we advise doing the Digital Start programme as it helps to build confidence through engaging in a project - and this could make all the difference.“
O’Shanahan says companies can see big improvements by making a few simple changes - including:
- Start with small steps when implementing change
- Select a pilot improvement project that will save time and reduce workload
- Celebrate progress, generate energy to sustain the change
- Change is a process and takes time. be patient but persistent
- Business improvement through change is rewarding and contagious - so get started
Adopting Lean and Digital policies can indeed make a huge difference to how efficiently micro businesses are run, but being ‘green’ is also vitally important.
The Green for Micro Programme is the best place to start and Paul Murphy of Climate Solutions, who has been working in tandem with 13 Local Enterprise Offices since May 2021 to support micro businesses in taking their first steps on the ‘green journey’ says the benefits are enormous.
“Working with the LEOs, to date we have worked with approximately 70 businesses across Ireland - and the range of companies we have worked with is amazing – everything from restaurants and bars, craft manufacturers, food producers, services companies in the digital space, waste management and transport companies – the list goes on,” he said.
“There are many benefits to taking part in Green for Micro, including helping understanding your carbon footprint - because if you understand your baseline, can measure it and then you can begin to take action. Also, it can help to develop opportunities to reduce energy costs, carbon emissions and develop a more sustainable business. We typically identify between 30 and 50% of energy costs savings in companies with a payback period of less than 4 years - and in all cases we identify a valid pathway to reduce emissions in line with Climate Science.
“We enjoy working with Micro companies and learning the amazing stories of these businesses. For us, it provides us with an invaluable insight into decarbonisation for business as Micro companies have particular challenges which SMEs or large companies do not have. And helping to solve these challenges will ultimately support us in developing more effective solutions for companies of all scales.”
The programme also helps companies to implement a Climate Action Strategy – a step by step instructional to reduce emissions in line with Climate Science - and to understand the next steps to take on their ESG journey.
The Cork-based expert says there are a number of ways in which micro companies can make simple changes which will make a big difference to their overall performance.
“The range of businesses we have worked with through the Green for Micro programme means that a wide range of solutions are identified,” he said. “Common opportunities we see to reduce a company’s carbon footprint and energy costs include:
- Renewable Energy such as Solar PV
- Heating Controls and Upgrades
- Building Fabric Upgrades
- Equipment Power Down when not in use
- Lighting and Other Miscellaneous controls
- Waste Reduction
- Electric Vehicles
- Packaging selection
- Material selection to reduce footprint
“We enjoy working with the Micro companies (assigned by the Local Enterprise Office) and learning the amazing stories of these businesses. It provides us with an invaluable insight into decarbonisation for business as Micro companies have particular challenges which SMEs or large companies do not have. And helping to solve these challenges will ultimately support us in developing more effective solutions for companies of all scales.”
To access a Lean or Green consultant and begin the first steps on your sustainable journey then contact your Local Enterprise Office.
