jrozak@hlhcpa.com
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Talent waste happens when your team isn’t engaged enough in their jobs to give you their creative best. When your doctors, nurses, and front-end staff feel empowered enough to stop you in the hallway with a “what about this,” the win goes to the patient and, by extension, your clinic.
Process improvement can’t happen without your staff. In healthcare, however, burnout poses an exponential threat to medical professionals, heightening not just Talent waste, but increasing risk of misdiagnosis.
Although not as prevalent in clinics as in hospitals, fatigue and burnout still loom large. Consider that some of your team may have a hospital position or be part of an intensive training program as well as their clinic shifts.
Burnout happens when doctors and nurses become so fatigued that exhaustion becomes emotional. They’ll feel detached from their job and will find it hard to locate any sense of personal accomplishment throughout the day, regardless that they heal people for a living.
At its worst, burnout can lead to difficulty focusing and may even affect meaningful interpersonal relationships. Here’s what you can do about it:

Think about your team one by one. Are there any individuals who, if they felt exhausted, emotionally drained, or frustrated at encountering administrative roadblocks, wouldn’t feel comfortable coming to you or another manager about it?
You’re not making widgets or houses. Healthcare’s product is well being. Lean thinking focuses on how to improve value to the patients across the entire industry.
You can’t automate the process of finding and fixing Deadly Waste. It’s case by case and pops up anywhere.
If you research the Deadly Wastes, you’ll often find just 7 of them. Talent was added last, and still doesn’t get the credit it deserves. We can nitpick about fighting Waste all we want, but engaged workers are the only tool to get you there.
Your construction project is an ecosystem of interconnected partners, each relying on the other to be able to do their job. The paradox is that while you’re thinking about the overall project health of the project, they’re thinking about getting their part done, so they can move on.
Lean Thinking prioritizes value of the customer over individual stakeholder needs. Encourage your contractors to feel more engaged in the process, and to think of their list of tasks as a list of commitments to perform, in order to add value. It’s a subtle shift with massive process improvement implications.
Empowering your workers to fight Waste starts at the beginning. Hire people for their attitude and outlook, not just for the skills they come pre-packaged with. Having a knack for quick framing won’t matter much if they don’t notice the defective measurement that will require a costly fix down the road.
Make the kick-off process more than a “Hu-ah” and handing out documents. Talk about the Wastes and give everyone the right to be a leader in identifying them, no matter how small or who may be at fault.
Everyone plays a skills-based role, but that should only be a part of their investment. Hire them as individuals first, skills second, and continue respecting them for the ideas they bring forward. If workers don’t feel respected, they’re unlikely to think about what’s bugging them, let alone report it. When a worker has an idea, engage them in dialogue about the pros and cons. Don’t brush them off with, “Thanks for that,” and walking away. Respecting them by listening to them will incentivize them to talk to you and is more likely to save you costly Deadly Wastes.
Of course, it’s not all up to you. Train your foreman and other managers to respect their crews in the same way. Put real consequences in place for workplace disrespect, no matter who it’s between.

When it comes to Waste, materials and processes get the lion’s share of attention. But our businesses were born, built, and grown on human creativity.
Talent Waste is the hardest to measure. We can measure other Wastes by what we throw away, spend on extra time, and have to repair. The best way to measure Talent Waste is to not ask what’s costing your business, but to ask where your business could be if your workers’ Talent wasn’t wasted.
An engaged, vigilant workforce is the only tool you need to crush the Deadly Wastes and open new realms of profitability, but you can’t legislate or delegate engagement. It starts from the top and must continue to flow from the top, no matter how bad of a day you’re having.
See our previous article on Talent Waste here.
To those paying attention, this should be a Waste to be concerned about. To those not paying attention, and focusing only on equipment and processes, this should be downright frightening.
Process improvement can’t be effective without broad staff engagement. Staff from the boardroom to the utility room need to be thinking about what’s feeling off or bugging them, and then need to feel empowered to speak up about it.
If you’re already actively engaging your team about Lean and Process Improvement, you probably have a good start on controlling this waste.
Every time a team member stays silent on an idea or shrugs off the urge to read a trending article in the industry, it’s Waste. You can’t measure it, because the Waste is losing the creativity that would build your company up, rather than only fixing the problems breaking it down.
Industries are being disrupted and uprooted one at a time, and if you’re in an industry that has, until now, been relatively unaffected, it’s a matter of when, not if. To survive, we must innovate and adapt, and do it constantly. Engaged people are the only thing that will get us there.
Are you hiring for skills or attitude? If you’re hiring for skill set alone (ie. lathe operator), you can measure the skills you’re getting and there’s often minimal training needed. That makes it pretty appealing.
Here’s what you don’t know when hiring for skills alone: that person may not take the extra step to challenge and push the business farther, and may just do exactly what is required, and no more. If you’re hiring to grow your company and compete on a new level, hire instead for attitude.
Tom Chandler’s KASH Box is a useful tool for balancing considerations of trained skills with built-in habits. The manufacturing workplace we’re moving towards is as much about creativity as process.

The responsibility for this Waste falls to management. Your team will react to the messages you send them. Here are a few usual suspects leading to Talent Waste:
See our previous article on Talent Waste here.
Reducing inventory waste has a direct correlation on patient wellbeing; the less time doctors and nurses are searching supply rooms, the more time they can spend with patients. In healthcare, fighting inventory waste is as much about organization as it is about how much inventory you have.
Your clinic’s business model will determine the type, volume, and range of medicines and supplies you need to carry. A speciality clinic will need to be stocked deeper in its given field, while an urgent care clinic needs the broadest range to address the massive variety of cases.
Do not neglect store-room organization. Clutter happens fast, leading to increased time wasted looking while patients are left waiting, and potentially resulting in a lack of space when urgent supplies arrive.
What kind of inventory management software are you using? Do its required processes sync naturally with your clinic’s operations, or do your staff have to go out of their way to update it?
If you’re not using a third party to track inventory, how are you doing it? While documenting every tongue depressor is a time waste, losing high-value equipment can add up to massive wasted dollars very quickly.
5S is a pillar of Lean thinking with a disciplined approach to storing and maintaining materials and would adapt well to clinics.

Some inventory combines the unsettling mix of expiring rapidly and being costly. Waste reduction starts with being aware of how the medicines are being used and the context in which people are using them.
If the newest bottles go in front, the ones in the back will expire while those in front are being used, leaving you with the costly waste of throwing away expired meds. Even worse is if, in the clinic’s hustle and bustle, someone grabs a bottle for a patient that is expired.
A Lean approach would be to colour-code labels so that, at a glance, hurried nurses and doctors can grab the right medicine, rather than having to read the fine print on a dozen bottles to find the best one to use.
How many pre-printed intake forms do you keep at the front desk? It may not sound like a serious waste, but if you have 500 forms at a hard cost of about $0.10 each to print, it becomes an investment. Multiply that with how many types of forms you have and it becomes potential waste.
Printing takes nominal time. While printing ahead of time is usually the work of well-meaning front-end staff, here are the downsides:
Printing is low-hanging fruit for Just-in-Time Thinking (which stresses creating inventory only when orders warrant it). Print a couple days worth of forms at a time and use the example as a training tool to show your staff how easy it can be to fight waste if we just look for it.
Your jobs use massive amounts of Inventory, and all of it has to be sourced, delivered, and managed, so it’s available when the right person needs it. However, having excessive Inventory means absorbing unnecessary shrinkage costs and, to add insult to injury, paying more to move excess inventory off-site, either to another site or a landfill.
It starts with planning. Don’t assume how much product you’ll need based on broad strokes; dig into the details. The extra hour it takes could mean the difference between having excess materials sitting on site at completion or making an excessive number of trips to buy more during the build.
Take the time to properly manage your staging sites by running through the worst-case scenarios and preparing for them. Is your lumber sitting on or around dirt that could quickly turn to mud, degrading the bottom layers? If so, find a dry space where your lumber is safe from water damage.
If you don’t have access to an enclosed area, spend the money for proper fencing. External theft is a massive loss of inventory and is easy to avoid. For more extensive insurance, install a camera in a highly visible spot to deter would-be fence climbers. If you’re not able to hook it up to make it work, don’t worry: it just needs to look like it works.

We all want to be confident in our businesses, but when confidence leads to idealism, over-inventory can be one of the side-effects.
Here’s a scenario: times are good, orders are piling up, and you could save 20% on materials by ordering a huge batch of pre-made trusses to service these and future orders, should the pattern continue. Instead, the orders dwindle, and the trusses sit. You’re now left either paying to store them inside, or watching the elements wear them down. That’s where idealism leaves a bitter taste.
You’ll pay a little more for the pull-driven system, only ordering the materials when orders come in, but that extra is well worth it if the orders stop and you’re prepared.
This will feel like a chore, and many will shrug it off in favour of just getting it done, but documenting your Inventory can ensure serious Waste reduction.
Whether it’s tools per truck or yards of sand on a site, make it company policy to write down where everything is. When a hammer is lent to another crew and 10 yards of sand are laid down, make a note of it. Here’s why:
Do you feel comfortable? Are you sitting pretty just you can service any order that comes in, no matter what the size? Then you’re playing the dangerous game of Over-Inventory.
Inventory is a tide. As is rises, your ship (the business) is buoyed higher and we stop worrying about the rocks (the inefficiencies) beneath the surface. As we build a “comfort stock” we tie up valuable cash on gambles and lose track of other Wastes that are draining our resources.
Let’s follow your processes. As your raw material moves through the steps to becoming a finished product, more dollars are pumped into it.
Over-Inventory, and Overproduction, it’s nasty cousin, stem from a blend of idealism and disengagement. We fall for the “make it and they will come” myth and, at the same time, crave the comfort of knowing that we’re ready for any sized order.
Do you shop at Costco thinking it saves you money? Mythbuster: it usually doesn’t once you factor in all the Food Waste that comes from buying bulk.
Same rules apply for your business. Suppliers tempt us with percentages off if we buy in bulk, which sounds like a good idea; you’re going to use it all anyway, right? Wrong. It’s more often a cash-killer.
Buying in bulk clogs up receiving areas, leading to temporary storage popping up and inviting Waste in everywhere. The possibilities of double-handling and potential spoilage (depending on the material, of course) set in.
What’s the lowest amount of inventory you can carry before production grinds to a halt? Can you balance your freight to deliver smaller loads, even if that leads to milk-running? Get close to the rocks; get uncomfortable.

You’ll have multiple steps in your assembly process (depending on your product). Waste can happen in any of them if you haven’t synced the processes between them.
If one process is faster, the partially assembled inventory will build up and as it accumulates, it’s more likely to get moved, damaged, dirtied, or lost.
Make continuous flow your goal. Sync your processes with each other, so that even if inventory accumulates before the next step, it’s predicted and managed.
Finished inventory is the biggest Waste. Think of all the money that goes into one finished widget. Now imagine each widget as a frozen chunk of that cash that can only be thawed and used again when bought.
Catastrophic Waste happens when your finished products accumulate to the point of paralyzing your cash flow. Comfort turns to panic on a dime, and product will often need to be discounted to keep operations moving.
You can’t operate with zero finished inventory; when customers call, they expect rapid delivery. But what is the lowest amount you reasonably need? Do the math. What orders can you expect in a month? What is a baseline of unexpected orders to come in? Unless your production process takes a long time, plan to carry less than the baseline.
Make it uncomfortable. Efficiencies will follow.