Lean – Vision, principles

and behaviors

“Lean has to be led, not managed”. This is what George Koenigsaeker once
said when he was president of Jake Brake, a Danaher company. Lean is not
just another improvement program, nor is it a stock reduction method or
quality system. You should start on Lean as a long journey to a new company
culture, to a totally new perspective and way of working, to new behavior, if
you really want to harvest its fruits in a sustainable manner.

This also makes Lean “scary”. Lean is frightening because it forces everyone
within the organization to look at their own functioning and at their own role
in the organization in a totally different way. And not only that, it
consequently forces them to change their own behavior and their own
reflexes. Moreover, Lean is scary because, in a certain sense, it prescribes
the principles which should be adopted. Are you ready to give up some of the
principles that you have been taught and that you have always used so far?
Lean is also scary because it has a wide scope, and because adopting some
of the instruments which arise from Lean principles will not lead to the
desired results, or in any case not to securing the results initially achieved.
Lean is not an instrument; it is a fundamental vision of the way in which
organizations should function.

What is Lean’s vision then? Lean aims at eliminating non-value adding

activities, at eliminating waste from business processes. Value adding
activities are those that create value for the customer. These are therefore
activities that are directly related to the execution of the services desired by
the customers or to providing them with the desired products. Now this is
easy to say, but do we also realize its implications?

It implies a very great degree of customer orientation. Because every time a

product or a document is kept waiting, the customer is waiting. This is self-
evident in the service sector. In Lean, the aim is that the product should
continuously move towards the customer, that the customer should never be
kept waiting. Every time a product, a document or a customer is kept
waiting, you are wasting expensive time. Lean strives towards instant
availability by means of eliminating all the waste.
Customer orientation is seen in the processes that create value for the
customer. Customer value is directly influenced by the people working in
these processes and the means they use for their work. Lean is therefore
strongly targeted at continuously improving processes, people and means,
always with the customer in mind.

This is why Lean is not only a cost-reduction program, far from it. It is a way
of working which leads to higher productivity as well as better quality and
service. As far as this goes, there is no trade-off in Lean, only an ideal that is
adopted as the “true north”, a Pole star to act as reference point and that
shows the way at every analysis, every issue and every decision.

Lean principles and behavior

In order for you to better understand Lean, we will present a few examples of
some Lean principles and the related Lean behavior. This is not intended to
be a complete list of all Lean principles, but will serve primarily to illustrate
the behavior that you should see in an organization that calls itself Lean. We
will describe seven topics in lean in more detail: standards, responsiveness,
kaizen (continuous improvement), striving for perfection, autonomy, respect,
and value streams.
 1. Standards

First of all, we will discuss the role of standards in Lean philosophy. A

standard method of working is, at this time, the best known way of reaching
a certain desired result. By best, we mean it is the safest, quickest, and most
efficient method to serve the customer effectively, at this moment in time.
Every other way leads to either lower productivity or to a less effective
process, or to both. Without a standard, there is no consistency and
therefore no feeling of quality as seen from the customer’s perspective.
Without a standard, there is also no predictable or consistent performance.
Without a standard, we cannot really speak of management, since there is no
actual reference that can be used for managing the process.

Relevant behavior here is behavior that is directed at providing standard

working methods, assuring standards are respected, and at continually
improving these standards. Lean managers know when the standard is not
being met, the performance will be below par and, at the least, inconsistent.
Lean managers know that if the standard is not continuously improved there
is no real progress but only consistency. Lean managers therefore ask about
the standards in every situation, will always check if the work is still being
performed according to the standard, and know that money is being lost or
the customer will suffer, if this is not the case.
 2. Responsiveness

Another example is that of quick response management. If a process does

not run according to the agreed standard, if a work place is not organized
according to the agreed standard, then immediate action should be taken,
since the best working methods are not being complied with. The monthly
results discussed by the management team are only a rather late (or even
too late) reflection of these daily deviations. This means that, first of all, the
deviation must be visible at the place where the process is actually being
carried out and secondly, that if an immediate reaction is desired, the people
working in the primary process should also be authorized and competent to
be able to take effective action.

The lean manager who is working in this way will often be seen on the shop
floor, looking for visual indications of where customer value or productivity is
slipping away. The Lean manager is process- and work-oriented and is clearly
no meeting fanatic or dashboard manager. “I only need two tools as a
manager; my legs and my eyes” – this is what the author learnt from his
Japanese mentor, Kazuo Kawashima, at that time quality director at Valeo
and now a member of the board of directors of Ichikoh in Japan. It is what
Toyota calls “genshi genbutsu” or “go and see” management. The Lean
manager responds quickly and will take action to correct any deviations, on
the one hand to maintain customer value or to prevent productivity slipping,
and on the other hand, to set a good example and demonstrate that
standards are important. A manager who walks past a clear visual indication
that the standard is being ignored in fact sends a silent signal to the shop
floor that the standard is not important, that the customer and employee are
not important. “Customer orientation” and “respect for the employees”
unfortunately then become hollow phrases.
 3. Kaizen
(continuous improvement)

As explained, the standard is, at the moment, the best possible way to
execute a certain process. A standard is important for ensuring consistency,
but is also the basis for continuing improvement. Based on the standard and
their experiences with it, customers, employees, managers and others can
suggest improvements leading to a new, better standard. Starting from one
standard and making a new better standard is called “kaizen”, which is
Japanese for “continuous improvement”.

The lean manager will therefore not see a standard as something that applies
for now and for ever. The Lean manager will always be searching for ways to
improve the standard but, at the same time, will always implement such
improvements as a new version of the standard. Look at it as a software
upgrade. Various changes are implemented as a package at certain times, in
a controlled way. Organizing such kaizen sessions only in order to implement
a stream of small changes in the work places and in processes is certainly
possible, but will not necessarily lead to a sustainable result because these
improvements are not consolidated in the standard, and they may even lead
to instability in the performance or resistance from the shop floor because
the process is being changed too often. The Lean manager will continuously
think “is there a standard? Is it being complied with? If that’s not the case,
go back to the standard. Keep looking for improvements which will lead to a
better standard”. The Lean manager will challenge the team and ask them to
reflect on the standard; this is known as “hansei”, which means to
acknowledge the mistakes made, review the lessons learned, and pledge to
improve.
 4. Striving for perfection

Lean never stops. In Lean you are always striving for perfection, while
knowing at the same time that you will never achieve it. Nothing is ever
perfect and Lean managers are always aware of the fact that everything can
always be better. Every standard can be improved, and performance can
always be improved by applying a better standard.

The above statements mean that Lean managers are always open to
suggestions; they will accept that there are probably better ways of
performing a process operation, and they will always be searching for
possibilities to improve the current working methods. If you tell traditional
managers that there are ways to improve the operation by at least 20%,
they will probably dismiss it with a smile, or remark that whoever imagines
such an improvement probably doesn’t understand things, or in the best
case, they may ask for a report presenting the business case based upon
solid data analysis. If you tell Lean managers the same thing, they will be
interested in what you have to say and challenge you to give a
demonstration during your next visit with them to the shop floor.
At Toyota they say “no problem is a problem”. Lean managers will create an
environment in which mistakes are tolerated and where not openly
acknowledging or reporting problems is considered a sin. Lean managers will
never, literally or figuratively, walk past a problem. Good performance comes
from experience, while experience comes from learning from previous
problems. Without problems the organization cannot learn, so an
organization that claims to be Lean must be a learning organization.
 5. Autonomy

Another important concept with Lean is the emphasis that is put on

autonomy. As stated earlier, complying with the standard and continuously
improving it is an important Lean principle. In order to work through this
process of correction and improvement as quickly as possible, it is very
important to organize the authority, means and competencies as closely as
possible around the process and the customer. The creation of so-called
autonomous teams and the continuous development of the team members’
competencies and skills are important elements in Lean. It was Shoichiro
Toyoda who said “We build people before we build products”. And this makes
it immediately clear how much attention Toyota places on the continuous
improvement of its employees’ skills.

Lean managers are responsible for the continuous building up, deepening
and expanding of the competencies of their staff. The team as a whole is
responsible for respecting the standards and continuously improving them.
And the group as a whole is responsible for the performance that is realized
using these standards. Lean managers give their teams confidence and coach
rather than direct them. Lean managers aim at allowing their teams to learn
during the execution of the process. This is why on-the-hob training (OJT),
learning-by-doing, coaching, and supportive leadership are much used
phrases when Lean is being discussed. Lean managers know which
competencies their team needs, know where their teams stand, and ensure
that their teams are always improving and expanding their competencies and
skills. Lean managers work for their staff. It is thus also important to develop
managers from within the own organization, people who really understand
the work. How can managers otherwise become the trainers and coaches of
their staff?
 6. Respect

Respect is a much discussed topic in Lean and covers respect for the
employee and for the organization, respect for the customer and for the
product or service, and finally, in all cases respect for the standard.

Respect for the employee doesn’t mean that everyone has to start
addressing each other as ‘Sir’ or ‘Madam’. Rather it means that Lean
managers will show respect for their staff by creating autonomy for them, by
coaching them and helping them develop, and by making use of the staff’s
creativity and knowledge in solving problems and improving standards.
Respect for the staff also means ensuring that the standards are respected,
since this also helps ensure the safety of the staff. Most accidents arise from
a lack of standards, not observing the standards, the misapplication of
standards, or from unsuitable standards.
Respect for the organization means that when Lean managers bring attention
to a deviation from the standard, they involve the relevant managers in
solving the problem, ask the right questions and in a coaching manner they
support their managers to achieve a better performance. In this way, the
Lean manager makes people into champions in their own right. This
mobilizes the whole organization instead of only a limited number of
specialized staff being expected to implement the improvements and to do so
without being truly accepted by line management.
Respect for the customer means that Lean managers never lose sight of the
customer during their work or interventions in the process, that Lean
managers ensure their teams know the customers they are working for and
what the customers’ requirements are. Respect for the customer also means
that no faulty, defect or incomplete products or documents are delivered to
the customer. And that also applies to the products and documents that are
delivered to in-house ‘customers’. “Waste: don’t make it, don’t send it, don’t
accept it” is the maxim in Lean.
Respect for the product means that there are appropriate standards for the
supply, storage, delivery and handling of the products, and that these
standards are always complied with, not only during the production steps in
the process. Lean managers will be alert to documents lying around,
products that are stacked in the aisles, and products that are stored in places
and in packaging that are not fit for that purpose.
 7. Value
streams

Lean is not only about improving the local work place or one’s own team, but
also about improving the whole process in order to provide value to the
customer, the so-called value stream. Often much customer value, speed
and productivity are lost at the interfaces between the different steps in the
value stream rather than in the individual operations.

Lean managers are those that are always thinking about their customers and
who therefore always consider the whole value stream in order to reach the
correct decision. Lean managers will not only look carefully at the
productivity of the work place, but also even more so at the productivity of
the whole value stream. For example, in a certain process Lean managers
will not only look at the separate operations and work places; while everyone
else is admiring the newest technology of the moment only aimed at making
the local work place more productive, they will probably pay even more
attention to what happens between work places.
Are you Lean?

The examples given here clearly show that Lean is about far more than
simply adopting a few methods or techniques. As John Seddon of Vanguard
said, “Watch out for the tool-heads”. Lean is primarily about attitude,
behavior, and reflexes and having a very thorough understanding of the Lean
vision and the subsequent principles it leads to. The methods and techniques
which flow from Lean will then seem logical to the organization.

But be honest. Are you applying Lean principles and do you and your
management demonstrate the characteristics of Lean leadership? Becoming
lean is not easy, as we’ve already stated. And leadership is the factor which
will make the difference between success and failure.

The organization’s top management must realize that change is needed, but
even more importantly, that they are an integral part of that change. Lean
must be embraced as a vision rather than as an improvement initiative that
should be implemented in the organization by a separate staff team.

The leader must make the vision explicit and must be consistent in this
during his or her talks and appearances, and in his or her behavior. At each
intervention, reference should be made to the vision, so that it is clear to all
the staff, all the teams and all the management layers where the
organization’s Pole star lies.

Top management should be leaders and will have to fulfill an exemplary role
if Lean is to lead to sustainable success. Top management must be the first
to portray the principles and to demonstrate the described behavior if they
are to mobilize the rest of the organization: a case of leading by example. It
is more effective to work towards a new way of thinking than it is to think
towards a new way of working. The culture of a company is expressed for a
large part by how the people in that company behave.
“We must become the change we want to see” (Mahatma Gandhi) was
printed on all the notepads used at one of the companies I used to work for.

Inclusion, vision and setting a good example: if you can consistently

demonstrate this, you will have already taken a large step on the way to
creating the successful conditions for making a sustainable change towards
an organization which can rightly be called Lean!