Key Principles for a Lean Business System

One of the mistakes companies make when they try to create a business system or develop a continuous improvement culture is that they focus on the wrong things. They scrutinize behaviors. They spend their energy reacting to unexpected results. They bounce from tool to tool trying to find a fix for their problems.

What they often overlook, though, is that fact that their employees are often not guided by unifying principles. There is no clear corporate identity. Guiding principles are like beacons for the team, and create continuity as people come and go.

While the exact principles you settle on for your organization will vary based on your industry, national culture, corporate mission, and a host of other factors, there is one common thread among all great companies. They have a belief system that is shared by their employees.

Think Long Term (Principle)

One of the problems that we face in business is impatience. We want quick results when we start a new initiative. We want new processes to pay off immediately. As a result, leaders often choose less effective options that provide some return on investment quickly rather than more effective ones that take a while to develop into greater fruition. In large part, this is a function of the pressures of the stock market.  Quarterly earnings reports force leaders to think in three month chunks of time.

Scalability

Scalability is the ability to easily ramp up or down to changing requirements. The term is in common use in information technology, specifically in reference to the ability of a system to grow to accommodate increasing traffic. In a continuous improvement sense, it is the ability of a process to Read more…

Champion

Making changes can be a rather large challenge. This is especially true when you are committed to making improvements to the value stream as a whole rather than local ones for an individual process. It is common for disputes to occur, especially when a project team recognizes that there can Read more…

C-Level Executive

C-Level executives are the top individuals in an organization’s hierarchical structure. The most common are: CEO (Chief Executive Officer) CFO (Chief Financial Officer) COO (Chief Operating Officer) There are also frequently c-level executives in charge of marketing or information technology. Some organizations will even go further and assign a chief Read more…