Sometimes, there is work that adds no Value to the Customer, but if it wasn’t carried out, there could be issues.
An example might be; running Credit Checks on a Customer before agreeing a loan.
It’s done to mitigate the risk of the loan not being paid, but doesn’t add an actual Value to the Customer.
- for every Customer who DID pay the loan back, the Credit Check was Waste.
- for every Customer who WOULDN’T HAVE paid the loan back, it added Value.
Therefore, we should keep Necessary Non-Value-Add to the minimum, and where we accept it, we should keep the cost and effort to a minimum..
(no point spending a million dollers to avoid a half-million-dollar risk!)