Lean transformation model

This is a very interesting new video by the Lean Enterprise Institute about Lean transformation:

The key message here is that effective enterprise transformations need change and innovation improvement at 5 dimensions. Using a house as an example, these dimensions are:

  • Objectives, goals and aspirations (The roof): What is our value-driven purpose? Why do we exist as a company? Do we care just about generating money (goal = profit) or do we want to create value for customers, employees and society (focus = value)?
  • Process (The 1st wall): What is the work to be done? Based on the company’s value-driven proposition, every person in the company must know the answer to this question: “what problem am I here to solve?”. Processes help us accomplish our purpose (just as walls hold up the roof). Process improvement (how do we improve the job?) is a key component of this pillar.
  • Capability (The 2nd wall): What capabilities do we need to do the work and solve problems?. This 2nd pillar makes sure that people are able to do and improve the work correctly.
  • Behaviour (People living in the house): What behaviours (soft skills) are required? What is the management system? How do we react to the different circumstances that happen at work (e.g. somebody makes a mistake)? What systems are in place to find out problems and help people solve them?
  • Culture (Foundations): What is our basic thinking? What are our mindset and underlying assumptions? Some assumptions are visible and explicit but others are hidden and, in some occasions, we are not even aware of them. We have a current culture as it is today and an ideal culture we aspire to. Understanding this will give us a gap to close.

All these dimensions are key for effective transformations and if you leave one out, everything will probably fail. Lean transformations need a situational approach: this means that every situation is different and needs different actions to succeed.

For more information, read the article by the Lean Enterprise Institute or this post.

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