In an Economic Slowdown, a Tighter Focus on "Lean" Can Boost P&L
Seven Factors Improve the Odds of Lean Success, Says New BCG Report
| Source: The Boston Consulting Group
BOSTON, MA--(Marketwire - September 23, 2008) - Why have so few companies matched Toyota's
legendary success with lean production? In a new report, "Getting More from
Lean: Seven Success Factors," The Boston Consulting Group (BCG) draws on
insights from client work and extensive interviews with leaders of lean
initiatives to reveal what successful companies do differently.
According to the report, many companies make the mistake of following a
one-size-fits-all approach to lean. But different cultures present
different challenges, and any lean program should be tailored accordingly.
For instance, in an entrepreneurial culture that rewards individual
initiative, employees don't always welcome enterprisewide programs and
generic communications. "In this environment, it's better to use a
'cascading' process in which managers tailor lean messaging and metrics to
their groups," explains coauthor Amyn Merchant, a senior partner in BCG's
New York office. "This increases buy-in and better addresses the specific
objectives at different levels of the organization."
The report also points out the need to choose strategic, customer-centered
projects. "Vague productivity or cost-cutting targets don't energize the
hearts and minds of employees," notes coauthor Hal Sirkin, a senior partner
in BCG's Chicago office. "It's important for the people working on lean
projects to realize that their efforts -- and the outcome -- matter."
Moreover, a customer focus reinforces the message that understanding,
satisfying, and retaining customers are top priorities.
Other important factors that contribute to the success of lean programs:
-- Think big, but start small
-- Involve everyone -- from top managers to line workers
-- Assign dedicated, experienced resources
-- Use metrics to drive progress
-- Communicate, communicate, communicate
Although the authors recommend starting with small, strategic projects that
are manageable in scope, they urge companies to embrace a larger vision.
"Lean programs must be ambitious and far-reaching in order to drive real
change," says coauthor Pascal Cotte, a senior partner in BCG's Paris
office. "Think about the total value that the initiative can unlock. Only
then can companies realize the truly transformational power of lean."
To receive a copy of the report or arrange an interview with one of the
authors, please contact Eric Gregoire at + 1 617-850-3783 or
gregoire.eric@bcg.com."
About The Boston Consulting Group
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