Strategic management: How can it help the furniture industry?

Waste reduction is the first step for the internal organization. Look at other tips!

There are many differences between companies that only survive and those that thrive, benefit and grow. But, without a doubt, an essential point to overcome the difficulties is to achieve a correct strategic management. And this is exactly where the formula for success or simply survival can be. The most common mistakes within companies could be summed up on three fronts: strategic misalignment facing the challenges of global transformation; undefined metrics and, thirdly, the lack of calculation of the return on investment in sales. Together or separately, these are common situations in most companies and contribute positively or negatively to management.

The Brazilian industry, for example, is the third most withdrawn in the world in the last five decades, according to a survey conducted by the Institute for Industrial Development Studies (IEDI), which reported that Brazil lagged behind countries like Australia and the United Kingdom. The data take into account the result of industrial production in 2017. There is at least one similarity between companies that don’t survive the first year in the market and those that after
decades declare bankruptcy and are exactly in the administration. And this is where the partners and executives of medium and large companies can find the formula for success, or at least for survival. Some companies have already
understood and are investing in structured management to deal with periods of calm or agitation with a great deal of security and are seeking to streamline their processes to eliminate waste and align company objectives and grow
sustainably.

LEAN Management and Strategic Management

LEAN is a set of concepts and practices that define the Toyota System, based on the 8 pillars of waste disposal and the elimination of products of higher quality, time and cost. The philosophy was adopted after World War II in Japan, by the newly founded Toyota Motor Corporation with the aim of producing cars as the United States did. But it had no resources, could not produce on a large scale and did not have large stocks of raw materials. Therefore, it reinvented the process and the way of working, maintaining a constant cash flow to meet the demands, reducing waste, costs and time.

Lean-backed management is an example that leaves room in this area. Applicable on different work fronts and in the most varied lines of action, it eliminates waste and leads to a reduction in expenses, which favors the strategic management of companies. “Competitiveness has increased a lot, both in the industrial sector and in the most diverse markets. The last decade has brought significant changes that have impacted all companies. Being prepared to understand how to adapt to innovations and still take advantage of opportunities requires a lot of planning, so you can follow the trends and achieve an efficient level of management, essential for any company," says Fabiano Souza,

LEAN management strategist and partner of Trajetoria Consultoria, specialized in the management method.

The technique developed by Toyota and replicated worldwide still arouses curiosity, and those who know and apply it understand that the results leave no doubt that the change of culture imposes a new rhythm, with assertive flows for greater process efficiency. “The LEAN methodology is not unipersonal; it depends on theparticipation of all sectors of the organization to make the most of under all orders. It’simportant to emphasize that this process not only occurs with the decisions of the directors, but with the union of all those involved who can help transform the company, pointing to its agility and profitability”, explains Luiz Lanzani, LEAN Management strategist, also Partner of Trajetoria Consultoria, who has already implemented the LEAN philosophy management model in more than a dozen critical companies.