Developments in Lean
The concept of “Lean” has been one of the most important influences on business in recent decades, originating in the Japanese manufacturing context and more recently being adapted for use by service sector industries. Basically, Lean involves the elimination of all unnecessary sources of waste (“muda”) in organizational processes to reduce costs, improve efficiency and maximise the generation of value to customers.
Some of the most recent developments in Lean include its adoption by many service sector organizations, especially in healthcare and the IT sector; the use of business intelligence and advanced analytics to support Lean; the development of proprietary Lean Production Programs by many multinational corporations, and the use of Lean to improve sustainability.
Becoming “Lean” can be a very effective way of improving the flexibility and responsiveness that organizations need to undergo the frequent transformation needed to remain competitive in today’s rapidly changing business environment. Conversely, most organizations need to undergo extensive organizational transformation to prepare for the effective implementation of Lean.
For successful organizational transformation, it is crucial to achieve the right balance of art and science. In Schroeder & Schroeder’s Art and Science of Transformation? framework, the “science” is defined as the use of change management tools and techniques, and the “art” as the skills and attributes needed to manage the cultural and people-related aspects of change.
Combining art and science is especially important when adopting Lean, since this approach integrates the use of technology and the inputs of people in optimal ways to improve business performance. Achieving success in Lean also depends on the ability to understand the demands and preferences of customers, since value must be defined from their perspective.
To achieve sustainable business benefits from Lean, it is essential to align organisational culture with this approach. Clear communications about this initiative and the involvement of employees in translating Lean principles to their own work will promote the development of new norms that promote the use of Lean. It is also essential to review and modify the performance management, compensation, competencies and other organizational systems to ensure that these promote the types of behaviours and attitudes associated with Lean and do not hinder its implementation.
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