What is Lean Management?

Lean Management: An Approach for Organisational Excellence

Lean management is more than just a set of tools or methods; it’s a way of thinking. It comes from the Toyota Management System (TMS) and focuses on continuous improvement within organisations. This approach aims to get rid of waste, empower people, and solve problems effectively. At its heart, Lean management is all about the people in the organisation and recognising their crucial role in achieving success.

What is Lean Management?

Lean management includes several models, like the 2.5 model, the 4P model, and the 14 principles of Toyota’s Lean Management. These models work together to form the foundation of Lean management. Each model offers a unique perspective, making organisational processes more efficient and effective.

The Core of Lean Management: People and Processes

Every year, I visit Japan to learn from Toyota and the Toyota Management Institute in Nagoya. For 15 years, I have focused on understanding their approach. One key lesson is that Lean management is about the people in the organisation. “First develop people, and they will improve the processes,” is a central idea.

Effective Lean management requires everyone in the organisation to adopt this mindset. Everyone must align their thinking and use specific tools and techniques to minimise waste and maximise customer value. While tools in Lean management are important, they are secondary to the people involved. This people-first approach is a key aspect of the Toyota Management System (TMS).

The Role of Motivated People in Lean Management

Lean management relies on individuals being committed to regular improvement activities, beyond their standard duties. Creativity is encouraged, and people are expected to generate ideas to solve process-related problems. At Toyota, the focus is on developing people and teams that embody the company’s philosophy, leading to exceptional results. Employees are systematically trained in problem-solving techniques.

The Culture of a Lean Management Organisation

• Leaders maintain a long-term vision, acknowledging the need for consistent improvements.
• Employees continually assess and aim to standardise activities, seeking to eliminate waste.
• Every member of the organisation persistently contributes improvement ideas.

Embracing Lean: Involving and Empowering People

True Lean management involves engaging people in the process, giving them the resources to challenge and improve their methods of working, and instilling a sense of capability and empowerment. The creative potential of people is a critical asset and should never be underestimated. This concept is central to Toyota’s approach to continuous improvement and organisational excellence.

Aligning with the Toyota Management System (TMS)

The Toyota Management System (TMS) shows that Lean management’s success relies on the relationship between people and processes. TMS highlights the importance of people as the primary drivers of sustained improvement and innovation, beyond just the tools and techniques used. Organisations that invest in their people’s development and create an environment where every employee actively engages in problem-solving and process improvement truly capture the essence of Lean management.

Toyota’s 2.5 Model: The Foundation of an ‘Invisible Strategy’

Toyota’s success is based on its ‘invisible strategy,’ rooted in the 2.5 model since 1950. This model is a comprehensive blueprint guiding every Toyota employee towards process perfection and customer satisfaction. The two principles and five topics forming the core of this model are:

1. Principles of Continuous Improvement
   • Challenge: Create value, maintain a long-term vision, and challenge people to strive for excellence.
   • Improve: Emphasise daily Kaizen practices, eliminate waste, and adopt best practices.
   • Genchi Genbutsu: Experience the actual work site (‘Gemba’), set collective goals, and take decisive action.
2. Respect for People
   • Respect: Build trust, understand differences, and foster real communication.
   • Teamwork: Grow as individuals and teams, create opportunities for success, harness teamwork, and maximise performance.

Lean management, as seen in Toyota’s 2.5 model, focuses on people. It goes beyond technical skills, nurturing a mindset of continuous improvement and deep respect for individuals. Training and development aim to foster both technical proficiency and a culture of ongoing personal and professional growth. This people-centric philosophy is a cornerstone of Lean management, contributing significantly to its effectiveness in organisational development and success.

Conclusion: Lean Management

Lean management is not just about tools and methods; it’s a philosophy that focuses on continuous improvement and the people within an organisation. By adopting Lean principles, businesses can eliminate waste, empower their employees, and achieve operational excellence.

The Toyota Management System provides a strong foundation for Lean management, emphasising the importance of developing people and fostering a culture of continuous improvement. Whether through the 2.5 model, the 4P model, or the 14 principles, Lean management offers a comprehensive approach to enhancing efficiency and effectiveness.

In essence, Lean management is about creating a sustainable environment where everyone is involved in improving processes and delivering maximum value to customers. By investing in people and focusing on long-term goals, organisations can achieve remarkable results and stay competitive in today’s fast-paced world.

Learn More About Lean Management

Want to dive deeper into Lean? Check out our online Lean Black Belt course to master the principles and tools of Lean management.