A Lean transformation framework can enable operations to drive the overall business strategy, through the creation of many tangible business benefits. Quality may increase through improved process yields and reduce scrap and rectification costs. Cost improves through reduced conversion costs, improved cash flow, and a higher return on assets. Delivery can improve through shortened production lead times which more flexible operations that can respond quickly to changes in customer demand.
Why do companies need to change?
Because market forces change. The world economy changes. Innovators emerge with disruptive technologies. More profit is demanded by shareholders. There are many reasons.
The need to change
Companies that are best suited to withstand rapid change in their industry are nimble, adaptable, and prepared to transform their strategies when the need arises to sustain a competitive advantage.
The three stages of change
Kurt Lewin developed a change model involving three steps: unfreezing, changing and refreezing. For Lewin, the process of change entails creating the perception that a change is needed, then moving toward the new, desired level of behaviour and, finally, solidifying that new behaviour as the norm.
What are the types of organisational change
- Organisation-Wide Change
- Transformational Change
- Personnel Change
- Unplanned Change
- Remedial Change
What change models (or frameworks) to use
Over the years, numerous frameworks have been introduced to the mainstream business culture as a method of achieving operational excellence. I use the most popular ones such as Lean, Six Sigma, Kaizen, Kotter etc. My approach is generic based on Lean principles:
- I always take a systematic approach to find ways to identify value and eliminate waste within a company to improve the flow or velocity of the outputs. It not a set of activities that you perform. It’s more of a mindset that should be present within the company and your employees.
- In order to Identify Waste in a Process, it is important to first understand that “Value” must be defined from the Customer’s standpoint. I usually work with clients to maximise the Value in their processes and eliminate Waste by guiding teams through a series of steps:
- Review and Document Existing Process Workflows, the context of business
- Identify Value: from the customers perspective, what’s generating revenue
- Identify Wastage: Non-Value-Added Process Steps and Activities
- Create Value Stream Maps or Functional Flow Charts
- Create continuous flow and pull systems
- Lead the change through a programme of change
- 1-1 sessions with high-level stakeholders or executives
- Improvement Workshops – AS-IS and TO-BE states
- Conducting statistical sampling and analysis
- Data-driven problem solving
- Implementing a programme management framework or delivery model
- Continuous improvement
To truly get ahead of your competition, your business should be operating at maximum efficiency and effectiveness. After all, efficiency can be a major influence on company productivity, profits, and agility. The best way to achieve this is through Continuous Improvement which leads to long-term sustainable growth.
You need to understand the business operations and supply chains from end to end. Whether it’s planning, sourcing, production, or distribution, you need to know how to address difficult challenges in managing cost and service while applying the latest thinking on key initiatives such as digital technologies, agile operating models, and change management along the way.