John Shook, CEO of the Lean Enterprise Institutes explains the Lean Transformation Model and how it can transform your organization. Learn more about the Lean Transformation Summit at lean.org/summit
Very useful and this has helped me clarify a number of issues as I begin a major transformation programme here in the UK in a $150m Tier 1 automotive supply company. Thanks !
I think this is a really nice piece - a great model carefully abstracted (I think its undersold as metaphor) from the Toyota House. I'll be sharing it with my clients, colleagues and friends. Keep up the good work John.
It is great to see the LEAN "experts" finally getting it. It is also worth noting that, whether they care to admit it or not, the foundation and roof as well as a good portion of management systems and leadership behavior are really rehashed TOC.
I really like this as the Lean experts are finally moving forward. But staying with the house building metaphor shouldn't the 2nd question (not the last), for an organization, be about what type of foundation we will need for this new culture? And shouldn't "leadership development" be part of the foundation before moving ahead with designing the pillars of Improvement and capability development?
...how do you detemine your situation? what are we maximizing here? profits, p/e, mkt share. revenue. how does one determine what's most important for long run survival? everything else here makes sense. very interested in answer from you. i'm economist by the way.
Maximizing value for the customer. And ultimately the customer isn't just the guy outside with some money to shell out. Every interaction is customer-supplier, and in a bidrectional sense. Every customer is a supplier and every supplier is a customer. It's a matter of perspective of how one defines the currency of exchange. Every employee is a supplier to their employer in that a service is rendered and the employer pays money for it. In the reverse sense, every employee is a customer of their employer in that they pay with the time they won't otherwise be able to spend on other things in life - a currency of great scarcity - to purchase the future security their paycheck represents. With this realization, then, the concept resolves into what the previous poster indicated: flow. Minimize difficulties, maximize value, smooth the stream.
Through identifying constraints and focusing on those with highest risk. Embracing then breaking those constraints will improve any system (or cause a massive remodeling).
