Lean is a way of thinking. It is a journey that is never over. It is a system framed in a collection of rules and principles. Some of the following 10 criteria may be more important than others to consider at the different phases of lean transformation.

1. Lean is a way of thinking. It is a journey that is never over. It is a system framed in a collection
of rules and principles. Current conditions and criteria must be examined. Some of the following
10 criteria may be more important than others to consider at the different phases of lean
transformation.
Creative Tension
Typically, tension carries a negative connotation. It is associated with headaches and difficult
circumstances. When a company is pursuing lean, however, tension is a good thing. In fact, the
urgency for lean and its introduction into an organization is always easier when a company is
struggling—when there is sufficient tension—than when it is doing well. The real challenge is to
get organizations to embrace lean in good times.
To develop tension, not stress (stress arises out of hopelessness), a company needs to develop
and articulate a clear vision of the ideal state’s characteristics. Then it must contrast that against
a deep understanding of its current state and define the gap. It does not matter how well a
company is performing because there is always a gap. The gap creates the tension.
For example, to instill some tension and a sense of urgency for introducing lean, a presentation
was given to the senior leadership and management staff of a building materials
manufacturer. After hours of discussion, it was clear the presenter failed. The company was
experiencing healthy profit margins; its market share was growing; and it was practically debt-
free. It was not until the company’s ideal state was defined and its leaders witnessed
choreographed plant tours to reveal the current state that they recognized the gap. The tension
was immediate and the leaders’ response was decisive.
Go for the Pull
If tension helps spur momentum for lean, it is best to capitalize on that momentum by engaging
champions predisposed to recognize the tension. An entire company cannot be taken on all at

2. once. So, start where there is a “pull” for lean rather than trying to “push” it in another area.
Most organizations start lean in their production areas where the effort is highly visible and
likely to reap the most benefits. However, when determining where to start, it is often best to
evaluate where there is the greatest pull. Look for a champion, sponsor, or compelling business
need.
As an example, a major gas and electric utility company started its lean efforts in the finance
area, because that is where the champion and the pull existed. Lean eventually spread to its
power plants, service centers, and other parts of the company.
Leadership Involvement
There are no better champions and no better advocates for pull then a company’s leaders. It is
ideal to have senior leadership actively engaged in the lean journey, not just sitting in a seat, but
also driving the vehicle. Unfortunately, senior leadership typically delegates the responsibility of
guiding the lean journey to others of lesser authority.
Even though there was a sponsor in the gas and electric utility’s ranks, it was difficult to engage
senior leadership on the journey in the early stage. To implement and institutionalize lean,
activities and structures at the management level were developed. This elevated the value and
results of lean to senior leaders, and today they are active and effective in leading the utility on
its lean journey.
Business Conditions
Business performance will determine what “gear” a company is in as it moves forward in its lean
journey. If a company is in survival mode or is under extreme pressure to immediately improve
performance, then leadership should focus on the immediate application of lean tools such
as Kaizens, waste elimination, or Five S. Development of a lean culture may be put on the back
burner for better times. If the climate is competitive pressure and recognition of the need to
improve, a company should begin with the tools but in parallel, work on changing the culture to
sustain and continue the improvements. If a company is in growing, flourishing industry that is
facing little pressure, then it should work specifically on developing the lean culture and apply
the tools as a manifestation of the culture.
Baggage
“Baggage,” refers to the bad taste left by past unsuccessful organization initiatives. A company
often overlooks this when it begins to design a lean approach. It does not make any difference if
the baggage is real or perceived; it should not be ignored. Baggage may include past corporate
initiative activities that resulted in layoffs or failed to satisfy expectations. It may also encompass
the “flavor-of-the-month” syndrome. The organization’s people may be primed to “wait it out or
wear it out” until the latest initiative—lean transformation—fades as well.
Culture
Consider the cultural makeup of a company. “Culture,” does not refer to the “lean culture” to
which a company may aspire. Rather, it is the unique traits and characteristics of the people

3. within the organization. Are there particular sensitivities to consider, such as language? For
example, multilingual training and development materials may need to be offered. There also
may be literacy issues. For example, at an aerospace supplier some basic lean tools were
presented in expectation of significant results as the company had many ripe improvement
opportunities. After less-than-stellar results, it was realized that there was some basic reading
and math deficiencies to address.
Resources
Ideally, a company will want the resources available to develop and dedicate certified lean
specialists to business units, plants, or specific areas. “Certified” means they are proven to have
reached some specified level of proficiency as determined by the company. The importance of
this is to establish a common language and a common lens for those who are driving the
organization. The specialists can act as internal consultants to teach, facilitate, and help direct
lean efforts. However, competition for resources or the relative size of the company may result in
the addition of lean to someone’s current responsibilities. Regardless, resource availability or
constraints must be considered when designing the approach.
Integration
More often that not, a company introduces lean either during or after other continuous
improvement initiatives. This can cause confusion between initiatives such as lean and six
sigma. One should not replace the other; they should complement one another.
One lean implementer likes to explain lean as, “…the systems you need to fight the daily fights
and manage the war. Six sigma, on the other hand, is the tool you need to storm the beach.” No
matter how it is looked at, an organization must see lean as a complement to the initiatives in
which it is engaged. Lean must be perceived as the vehicle to take an organization to new
heights. Successful efforts should not be negated. Lean should be used to leverage a company’s
effective efforts—not replace them.
Measurement / Evaluation
Measurement/ evaluation systems dramatically influence organizational
behaviors. Unfortunately, the resulting behaviors often conflict with the desired behaviors of a
lean initiative. A company should carefully look at what it measures and evaluates, and who is
accountable.
At a major automotive parts supplier, direct labor was the Holy Mantra : “drive out direct labor
and you will be rewarded.” The easiest way to drive out direct labor was to automate processes,
so that is what the company did. After closer examination, however, the company’s leaders
realized that costs actually increased because of downtime, scrap, indirect support, inventory,
and other issues. The point is not that automation does not have a place in lean: it absolutely
does. The point is the measurement drove the behavior, which is not the best lean practice.
Vocabulary

4. Vocabulary may seem like an unimportant consideration, but jargon can be
confusing. Employees of organizations become increasingly confused as leadership introduces
one initiative after another—the flavor of the month. If a company has a “process excellence”
initiative, the title should not be changed. Instead, it should be integrated with the rules,
principles, and practices of lean. If a lean concept is introduced, but there is already an existing
word with the same meaning, keep using the same world.