30 years ago, “The Machine That Changed the World” drove the spread of the lean system
The launch of the book “The Machine That Changed the World” in October 1990 radically changed the way people understood competitiveness in the global automotive industry.
It introduced “lean” to the world – the term brought by the book that became synonymous with a new management model, used globally today by many companies in practically every sector.
It became a classic for its ability to grasp the magnitude of the enormous transformation that was under way. And for describing in detail the new management paradigm that was maturing, based on the Toyota system.
The book's central argument is that mass production companies were losing to lean organizations, which is demonstrated unquestionably through data and analyses that clearly explained the concepts behind this superiority.
It described a complete new business system, encompassing product development, production, supplier management, customer relations and general management.
However, while the contribution to manufacturing was perceived clearly and quickly, leading to an awakening in factories all over the world, this did not happen immediately in the other dimensions of the business model, and important aspects of the lean system remain underdeveloped to this day in many companies.
For example, the impacts on Product Development and innovation described in the book received little recognition at the time. Only in recent years has interest grown in applying lean concepts to this fundamental element of the system. That is where the product vision begins, establishing the expectations of the value to be added for customers and its connection with the entire company. And it is in product and process development that we have the best moment to conceive truly lean production and delivery, considering the entire value stream.
In the supply chain, the aspects of logistics and pull-based supply were quickly perceived and advanced. However, the deeper principles revealed in the book – trust, long-lasting relationships and cooperation to eliminate waste and share gains – are still practiced in a very limited way to this day.
And the change in the relationship with customers also went unnoticed. Few paid attention to the description of the effort to create a greater connection with consumers, with the sales area as a bridge for this, integrated with the rest of the organization.
“The Machine That Changed the World” was much more than just a book. It had a profound practical effect, leading to the creation of a worldwide lean movement that reached far beyond the automotive industry. Today, it is widely used in practically every economic sector.
It was the first global study in which Brazil's performance was compared with that of other countries. And the results were not very flattering. Brazilian industry had the worst levels of productivity and quality in the world, producing a portfolio of outdated products. The protection of the industry established in the country had generated a stagnant, oligopolistic system, frustrating the interests of consumers and society.
Fortunately, this scenario has been changing over recent decades, despite the enormous structural problems that still persist.
Also very limited, at first, was leaders' learning about how to connect the improvements being made in processes with business results and with the development of people's capabilities.
Often, they were interested only in the efficiency and optimization part. Or they looked for quick and easy solutions to their problems, as if they could simply “add” lean to what they were already doing to eliminate some waste.
This attitude can still be seen today in initiatives focused only on the “tools,” without understanding lean as a strategic management system that can completely change the company's competitive level.
Brazil was one of the pioneers in spreading the lean movement with the creation, in 1998, of Lean Institute Brasil (LIB), founded by José Roberto Ferro, who took part in the research that gave rise to the book. It was the second lean institute in the world, after the Lean Enterprise Institute in the US, created by James Womack, one of the leaders of the research and co-author of “The Machine...”. These two institutes started the Lean Global Network, now present in more than 30 countries.
Lean thinking has spread widely in Brazilian companies and among professionals. In many cases, the lean transformation initiative in global companies began here and was later adopted across the entire corporation.
We can say that the lean community in Brazil is one of the most active. Many people have experimented with these new concepts and practices and have realized their power and effectiveness. However, how deep this understanding is remains a central question.
At LIB, we have learned a great deal in all these years since “The Machine...” by helping so many companies with their lean transformation. Our understanding of lean leadership has deepened, we have broadened our understanding of the management system and we have contributed essential methods, such as developing problem solvers with A3 thinking. We have also built a holistic view of lean transformation, which emphasizes the need to go beyond processes, aligning purpose, people's capabilities, management systems, leadership behaviors and mental models.
The message of “The Machine...” is still highly relevant today. It spread the foundations of a management model based on respect for people and the development of leaders. One that results in the responsible use of resources and gives companies superior performance in addressing the contemporary challenges of our society, such as climate change, the growing use of new technologies, the changes in consumer habits resulting from the covid-19 pandemic, among others.
The lasting legacy of “The Machine...” and of lean thinking may perhaps be the democratization of the experience of using the scientific method and problem solving at all levels in our daily lives, in everything we do in companies and in society, generating new practical hypotheses, learning and improving every day.
