Lean Transformation

Lean Transformation is the process of introducing changes in an organisation with the goal of maximising the value produced for the customer. As a result of this process, wasteful activities are identified, removed or optimised.

We are all trying to transform. That's what lean thinking and practice are all about: challenging us to reflect deeply on how we can improve this situation, improve an organization, or improve oneself (and of course, all three). Each of us knows from experience that this work is never easy. Whatever your role in the organization, whether you are improving one operator's work at the gemba or trying to transform an entire organization, this is tough work.

When initiating a Lean Transformation within an organisation, making why this process is taking place obvious to the management and clear to the staff is of crucial importance. It is key to its success to have a solid support at all levels of the organization, or the risk of reverting to the “old ways” is inevitable. It is essential to make it transparent what problems are being tried to solve with Lean and communicate clearly what is expected to happen during and after the Lean transformation.

There are 8 typical stages in this process:

1. Evaluation , important to identify the real underlying problems and the potential solutions.

2. Initiation , to get Management on board with the transformation and secure funding for the necessary training and tools.

3. Training & Tooling . Once the budget is approved, it is important to invest substantial amount of these funds in training for the management staff.

4. Flow across a single service (i.e. in the context of a business organisation, a function that receives a certain input, manipulates it and produces a particular output). Visualizing the steps required to produce the output is vital for getting the most of Lean. During this stage, it is important to introduce the concept of flow and map the process of the team(s) involved to get started with continuous improvement.

5. Analysis & Optimisation . After a few months, there should be enough data to analyze the workflow and see more room for improvement. At this stage of the Lean transformation, unified key performance indicators should be established and the whole company get on board with them.

6. Flow across multiple connected services . By the time this stage is reached, the company will be ready to expand value stream mapping across the whole company from product management to direct value delivery to customer.

7. Establishing governing methods . When a complete value stream is in place, a unified way to manage it will be required. Methods such as “Portfolio Kanban” can be invaluable at this stage as they will make every process in the company transparent across the hierarchy.

8. Continuously improving processes & services . Finally, to complete the Lean transformation, it is a must for continuous improvement to be adopted as part of the company culture. Every person needs to take it to heart and constantly look for ways to improve both the process and their competencies. This last stage is essential to the success of the entire process.

The key objective of Lean is producing more customer value, the removal of waste is just a consequence of this. If we think about Lean only from the perspective of reducing waste, then it’s easy to confuse a Lean initiative with cost cutting or budget reduction. An experienced consultant can help advise on the way to transforming your company. That person will be able to provide practical know-how about the tools you need and coach you in implementing Lean.

It takes training, ability, determination, sometimes luck and, above all, the ability focus on the goal so you can beat the competition. Each person is selected for their position on the team based on their skill at that position. The Lean journey is a race with no finish line; however, it’s the continual transformation to stay ahead of the competition. Sometimes the race itself changes and we must be aware when it does.