Why companies that care about sustainability should embrace lean & agile management practices

Companies that have a purpose around sustainability focus on producing products or services that create less waste and more value for customers and the environment. However, the principle of eliminating waste does not only apply to actual, physical waste, but also to the waste created by inefficiency.

What is Waste? Waste in fact is the opposite of Value (A capability delivered to the customer through which the customer attains a tangible or intangible benefit). So whatever feature or functionality or process step neither adds any value nor is being used, then it will be considered to be a waste and should be eliminated from the system/product/process.

Businesses must create a work environment where ongoing development and innovation are sustainable, where resources are used efficiently, and where employees can plan for the future. A work environment where employees can create value for customers, the environment, and society.

The answer? Lean and agile.

The purpose of Lean is twofold. First, it’s all about creating the highest level of value for customers and always working to raise this. The second is to use as few resources as possible and minimize waste along entire value streams — not only at isolated points — to deliver this value. Identifying and eliminating waste results in efficiency, productivity, and reduced costs.

According to the Lean theory the following can be considered waste:

1. Inventory: unfinished products. It generally means that the work (product) is not completely done as per your “Definition of Done” and hence you cannot demo it or you cannot release it.
2. Overproduction: Producing more than the customer’s demand. Providing more than what is being asked for. Remember the Pareto rule (80% of the users use only 20% of the product features)
3. Over-processing: including unnecessary additional steps in processes. Not using the knowledge that is available to the team members and trying to reinvent the wheel.
4. Transportation: moving the product without creating additional value by doing so. Passing the work from one hand to the other after completing the first person’s work.
5. Waiting: being unable to continue with a process due to waiting. Anything that causes to take more time to deliver a value-added activity or delays the beginning of the activity that adds value.
6. Motion: unnecessary movements of employees or machinery. Team members move from one task to another without completing the first task properly.
7. Defects: faulty end products. Erroneous functionality that produces a wrong output that does not match the desired output.

This is where Agile comes into the picture. Agile is about generating more value with fewer resources, as it includes continuous research, ongoing user testing, and regular feedback sessions on findings and viable ideas. This means less risk and minimal waste of resources. Moreover, the quality of the end product is higher (in terms of value), since small and incremental releases mean issues can be caught early, making response and resolution more effortless and faster.

Applying lean and agile methods helps companies to turn their purpose into physical products. At the same time, it also resolves the issue of the 7 wastes and generates more value for customers and the environment.