Lean: Why it Works & When it Doesn’t
Over the last 65 years (a very brief time in the history of commerce), there’s been a slow but certain shift from “build it and they will come” towards “they will come if you build what they want.” The looming question remains though, “What do they want?” This is particularly daunting when talking about new products or services, whether you’re a startup or a mature small business.
Asking your customers what new things they would like usually results in variations of what you’re already serving them. Very few diners in a pizzeria are going to suggest you add washers and dryers so they can do their laundry while they eat.*
Figuring out the next great thing or what new channel will take your business to the next level is equal parts listening and inspiration. You look around, you talk to people, you get ideas and try to figure out if they’re worthy. Then sooner or later, you just have to jump off that cliff in a leap of faith. And that’s when the real work begins.
WHAT IS LEAN?
With roots in the Toyota Production System, Lean means focusing on your customers and maximizing the value they receive while using the last amount of resources necessary to deliver your product. It’s about creating more value with less waste. Although lean was developed in the manufacturing world, its concepts can be applied to services, existing companies and products, and startups.
The five basic tenets of Lean:
- Find out what your customers value and what actions add value to your end customer
- Figure out how to produce that value from start to finish
- Cut out wasteful steps in that process without creating interruptions or delays
- Produce and deliver only what the customer wants, nothing more
- Go back and do it all again and again and again…
Even though Lean may seem to be entirely focused on creating a system that does more with less, that’s not really accurate. At its core, Lean is about getting the most out of what you have and getting better and better each time.
WHY DOES LEAN WORK?
Lean works, when it does work, because it’s all about flow, interaction and empowerment. It involves the whole organism, and, when implemented correctly, rewards everyone.
Customers get the value they’re looking for without a whole lot of obscuring or distracting kerfuffle. The company benefits because it doesn’t waste time and effort creating unwanted or unused pieces or things. Employees benefit because they don’t waste their time doing things others won’t appreciate.
Lean principles are motivational. They very essence of Lean is trusting employees to become problem solvers. Some of the best insights a manager or business owner gets come from employees. They are often the eyes and ears of the company; they’re the ones on the production lines, the phone lines and the front lines.
When engaged, employees can help you understand the value you should look to achieve. They’re also in the best place to tell you where there is waste and weakness in your start-to-finish value chain.
WHEN LEAN DOESN’T WORK
Lean does not work if we’re not willing to keep our minds open to the views, opinions and judgment of those we work with and those who work for us. Respect for people is crucial to Lean thinking. If, in spite of what the data and others are telling us, we insist our vision is right and we stick to our guns, Lean cannot work.
Lean does not work if it’s implemented halfheartedly or higgledy-piggledy. You can’t have a Lean production mindset and fat management, the two just don’t mix.
Lean does not work if you take somebody else’s process and just impose it exactly as is on your own business. Lean is a set of principles and is not just something that can be copied from one company to another. It is the scientific process of planning, doing, checking and acting upon the results, and then doing it all over again. It is unique to each industry and each organization.
Lean does not work when it’s used like a toolbox. You can’t whip out your just-in-time supply chain principles and tighten up your production line with a quick fix. It is, quite literally, a process that involves multiple, ongoing iterations. You can’t just leave any of the steps out because the Lean process is a loop, and loops don’t work when they’re broken.
Ask anyone who’s flown in the last 10 years on a commercial plane. I don’t know exactly where they went wrong, but as a whole the airline industry has missed the lean boat. Maybe they didn’t bother to find out what their customers really valued or maybe they didn’t read the whole book. Trying to fly somewhere is often like a B-movie version of “Lean Gone Wrong” where gate hiccups, plan delays and glitches like a broken cockpit knob can create a cascade effect that could take out the Northeast Corridor.**
Lean does not work when raising children.*** That process is just too chaotic. If you have them you know what I mean. If you don’t, please take my word for it or take my children, the choice is yours.
* By far the most successful laundromat in my college town was attached to a local sports bar.
** N.B. This is a personal opinion which may well be that of a completely deranged individual and in no way reflects the opinions of the management or the publisher.
*** I refer here to the raising of children in the home. If you’re going the boarding school from Pre-K to University route you might believe the Lean Process can work. But, it doesn’t. You’ve just shielded yourself from viewing the process.
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Originally published at RogueNotion.com
