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Traditionally Lean methodology is prescriptive. Hence many times, it starts with an introspection of current state, usually by a site visit of a Lean expert followed by a load of prescriptive tools, techniques, things-to-do that come as a download to the senior leadership team from the expert. He would site examples from their competitors and other organizations where lean tools suggested by him have improved their turnaround times, reduced defects and inventory and finally increased profitability. Soon the senior management is committed to deploy Lean across the organization.
All this goes well till someone asks for ROI. Once you have started lean without across the organization without deciding on key purpose, it’s very difficult to discontinue or even manage it for results. Due to its prescriptive nature, several lean techniques become corporate rituals. Then it’s only done to keep the big boss happy.
So, it is best to restrict Lean deployment where it makes sense for the business. The cultural spill that most experts sell, doesn’t help if business doesn’t see value. In other words, do it where the business will benefit the most! I have seen cases where it was part of the corporate drive and deployed in areas where it wasn’t needed at all. Probably what was needed in those areas was basic discipline and process orientation like 5S. It is the most abused lean tool. If you understand 5S, you would agree with me that it’s a disciple of using common sense continuously. No doubt implementing 5S is the first step in Lean deployment, but many organizations stop with it!
Here’s a simple approach to help leaders in organizations decide where to implement lean:
1. Get clarity on the Organization (or your P&L entity’s) 3-5 year strategies Strategies are key areas when accomplished will help the organization achieve its mission and vision
2. Find out if there is an action plan to execute each of the strategies Here is where most organizations lack clarity. Strategies are high level and most organizations experiment with something or other to make it work rather than adopting a structured approach.
We are not deviating, but we are rather finding out where Lean would be effective and useful.
3. Carry out an analytical deep-dive (like a root cause analysis) For example, if the strategy is to ‘Increase the penetration of our products in small & medium enterprise segment’, then collect data on our current penetration & competition’s penetration, demographic spread by industry type, turn-over, clusters, historic performance, etc.
Use this data to identify 3 or 4 key drivers to focus.
4. See if any of the key drivers can be enhanced using Lean In our example, if we identify that our documentation & delivery mechanism is complex than competition and this is one of the deterrents for new customers. Then you can use Lean to eliminate waste in documents, simplify the process, eliminate wait times and shrink delivery processes.
Probably in doing so, you would have established 5S, single piece flow, need for dedicated lines, multi-skill select staff, etc.,
This might look like a piece-meal approach, but it isn’t. It is a way to prioritize the lean deployment roadmap for your entire organization. When this cycle is repeated over several quarters, most of the organization would be covered by Lean as most of what we will be doing will be end-to-end and not functional.
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