Complementary Nature
Profit mapping complements the many strategic frameworks, improvement approaches, and measurement options in business today. It does not replace what companies already find helpful. Rather, its integrated and dynamic nature enhances existing business improvement efforts by providing additional critical “perspective” and guidance that might not otherwise be available to decision makers.
For example, there is an implicit assumption that becoming lean or reducing product defects through Six Sigma leads to cost savings. Many companies have learned through experience that while these are sound improvement strategies, they do not always have the intended impact on overall business performance relative to the financial and time investment devoted to the efforts.
Such results should not be surprising as lean and Six Sigma are designed to improve process efficiency, but do not explicitly focus on the overall effectiveness of the organization. Profit mapping can help these types of process-focused initiatives by showing precisely which lean or Six Sigma activities will lead to both process as well as financial improvement. This helps managers understand the cost and profitability implications of their change options so they can make more effective decisions.
Read more about this topic: Pro FIT-MAP Methodology
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