Adopting Lean principles and tools is a practical approach that transcends industries and workplaces. Gordon Naughton explores the benefits of Lean, its impact on organisational culture and provides practical tips for implementing Lean practices in an organisation
A recent global PwC survey listed the top three reasons for employees leaving: financial, fulfilment and the ability to be themselves.
At the core of Lean is the principle of respect for people. This principle emphasises the importance of treating employees with unconditional respect and providing them with meaningful work.
By recognising the value of employees’ contributions to its genuine purpose, organisations can mitigate issues such as burnout and high turnover rates. Respecting employees as people and aligning actions with stated values and purpose is crucial to creating a positive workplace culture.
Reducing headcount as a last resort
Organisations must live up to their outward values by genuinely valuing their staff. Lean thinking discourages reducing headcount as an immediate cost-cutting measure.
Lean was created and perfected by Toyota in Japan.
In 1950, Toyota encountered financial difficulty. It had to reduce its headcount and introduce other painful reforms to save the company. In a country and company famed for “a job for life”, the President of Toyota, Kiichiro Toyoda, recognised the breach of the social contract and dire consequences for exiting and remaining staff. He duly resigned.
Within crises, there is opportunity. Recognising the opportunity that reduced activity brings, companies should actively consider using spare capacity and capabilities to reposition themselves for new challenges.
Seeking efficiency beyond staff reduction
Encouraging employee engagement and participation is critical for successful implementation of Lean.
Organisations need to ensure that efficiency initiatives genuinely align with the staff’s best interests. Otherwise, expecting the initiatives to be implemented effectively is somewhat naïve.
Furthermore, the negative impact on culture and engagement of executing nefarious initiatives can be severely problematic to the morale and culture of the organisation.
Starting small and celebrating success
A key aspect of Lean implementation is starting small and celebrating success at every opportunity. This approach builds confidence, knowledge and momentum for tackling more extensive and complex challenges.
Incremental improvements, when compounded, can yield substantial rewards.
Focusing on impactful improvements
To maximise the benefits of Lean, organisations should focus their efforts on the areas that will truly move the dial.
By concentrating on the right priorities, organisations can drive substantial efficiency and cost-reduction improvements.
Leveraging team knowledge and empowerment
Efficiency gains require a collective effort and the utilisation of the team’s knowledge and wisdom.
Relying solely on top-down decision making is a fallacy. Taking the time to engage with impacted teams, empower employees and gain insights from their experiences fosters a culture of advocacy and continuous improvement.
Accountancy and Lean
The time has come for accountants and their clients to embark on a Lean journey to drive cost reduction and enhance efficiency.
By embracing Lean principles, respecting employees and focusing on impactful improvements, organisations can achieve tangible financial gains while cultivating a culture of continuous improvement.
Gordon Naughton is Founder and CEO of Tactive and a Lean Black Belt
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