Leading a Lean Transformation Part I

A Lean Transformation is a way to changing your business.  Traditionally it’s about reducing waste, making products and services “flow”, and reducing excess burdening on people.  It’s hard for businesses to believe that by changing the way you look at a problem can change the way you perform.  Typically business will see a 30% improvement or better to their bottom line after 1-3 years of a Lean Transformation process.  Some other notable results from The Lean Way include turning a cost center into a profit center, a company getting on the INC 500 list, and reducing the costs by 50% to turn an unprofitable product into the most profitable one.  You can learn more about how the factors that influence a Lean Transformation on our information tab.

The Lean Enterprise Institute has a great video on what Lean Transformation (how Toyota – the founders of Lean -use it).  This is a way that can apply to most businesses however only 2% of businesses get the results they wanted from a Lean Transformation (industry week survey 2013).  Over 70% of change efforts fail the first time (McKinsey change management study).  Combine these two stats and it’s a wonder why companies still try to do Lean Transformations.  The reason is around the culture of your company.  Certain cultures work better than others to start a Lean Transformation.  Before starting a Lean Transformation you have to get your culture in the right spot.

Part II of this series will cover the cultural elements and as we go through this series