Transforming the world by solving problems

Anyone who has seen startup pitches seeking funding for their initiatives knows that almost all of them end by claiming that their idea can change the world. Some actually manage to radically change habits and behaviors; others not so much.

This vision of a greater purpose is fundamental and has always been present in the lean philosophy. Twenty years ago and still today, James Womack, when closing his talks on lean, always emphasizes: “if you apply these concepts, you will end up changing your work, your company and your customers’ lives for the better. And if we all do this, we can change the world”.

It is a somewhat pretentious statement, which becomes more tangible if we analyze the various “worlds”, in four different dimensions, that lean can transform.

The first “world” that lean sets out to transform is that of the customer. Adding value for the customer is the starting point of the philosophy, and there are countless examples of applications that have improved the consumer journey, making it faster, simpler and more accessible through products and services that better meet their needs and solve their problems.

Another “world” that lean strongly transforms is that of the company. By eliminating waste in their value streams and developing products faster and more innovatively with lean concepts and tools, companies serve their customers better, become more competitive, grow and achieve better results. This is, in general, the main motivation that leads organizations to pursue lean transformations.

While the changes brought about by lean in these two “worlds” are more evident, two other “worlds”, equally positively impacted, are not always highlighted. We are talking about the world of work and the whole world, that is, society.

In the “world” of work, the one closest to the people who carry out the processes, a true lean transformation, which has the fundamental principle of respect for people, brings countless positive impacts, such as better ergonomics, safety and satisfaction. Simplifying the work environment and greater participation by everyone, improving processes daily, are always cited as important factors of motivation and pride for the teams involved.

Finally, the impact of lean on the world (this one without quotation marks, that is, the whole of society) is ultimately the greatest result of the changes in the previous “worlds”. Every improvement, resulting in greater efficiency, productivity, elimination of waste, etc., brings economic, social and environmental gains to the communities and countries where it occurs. Some are more evident when, for example, an improvement in healthcare makes it possible to save lives through faster and safer care, but in the end all of them have a social impact.

And the way this is done is another fundamental characteristic of the philosophy, highlighted in the second part of the theme of Lean Summit 2018: transforming the world by solving problems.

This distinctive approach begins with the way problems are seen. In lean, problems are like treasures, which must be exposed and discussed, because only then can we improve our processes and achieve better results. What is bad, then, is the opposite: hiding problems, as happens in most companies, because people are afraid of being singled out as culprits.

Once exposed, any deviation must be solved immediately, predominantly by the people on the front line with the support of their immediate superiors. In the lean mindset, everyone makes improvements daily, not just specialists.

Another important factor is how the problems that need to be addressed are selected and prioritized. Art Smalley, one of the international guests at Lean Summit 2018, describes four types of problems that companies face and how each one is identified.

The first type is immediate containment. This type of problem is identified by work teams, as long as they have daily management routines, such as clear standards and visual management. Through a quick analysis of the causes, using, for example, the 5 whys, the team, with the leader’s support, takes immediate countermeasures to stop the occurrence of a deviation, which may be related to quality, machine breakdown, unsuitable material, etc.

The second type is the gap with respect to a standard. Typically, this is identified when key process indicators are recurrently not met. A deeper analysis will possibly be needed, in improvement teams made up of the team involved with the support of specialists.

These first two levels are reactive, restoring a planned situation, while the following ones are proactive, leading to new levels.

Establishing a future state is the third type of problem. To meet some competitive need, management sets targets and desired conditions that go beyond current performance. This happens, for example, when a multidisciplinary group analyzes an entire value stream, pursuing specific objectives such as improving delivery, increasing productivity, reducing lead time, etc.

The fourth type of problem is driven by the vision of the future and innovation. These are the problems identified strategically by the company’s leadership through processes such as hoshin kanri. Some companies focus their lean initiatives only on improving their current processes and waste the opportunity to apply powerful lean approaches and tools to innovation, such as the concepts of lean startup and LPPD (Lean Product and Process Development). Or they launch sometimes disconnected initiatives, pursuing digital transformation or industry 4.0, but do not integrate them as part of their lean journey, as we discussed in a previous lean mail on the subject.

Every company needs to be very clear about the purpose of its lean effort, that is, which problems it wants to solve, whether those of customers, the company, workers or society, and how it organizes itself to solve them through a robust system that addresses these four types of problems.

Reflect on this with your colleagues: how are problems identified and addressed in your company, and which “worlds” do you want to improve? It is certainly a discussion that can take the understanding of the lean transformation, and commitment to it, to a new level.