Lean Management: what is it and how to implement it?
Posted: Thu Dec 26, 2024 3:48 am
Lean Management is the idea of increasing efficiency and reducing waste to improve results. Applied to the world of finance, this translates into the creation or adoption of tools, processes and ways of working that contribute to better performance of the finance team.
The origin of Lean Management
If we look even further back, we see that this concept initially emerged in production or manufacturing systems – with Ford and Toyota as the most notable examples. But those who created the most comprehensive and complete definition of what a lean system is were James Womack, Daniel Jones and Daniel Roos, in the famous book "The Machine That Changed the World”. This definition is divided into 5 principles:
1. Identify the value for the customer , or in other words, what they are looking for and what they are willing to pay for;
2. Determine the value stream , that is, find the elements of the indonesia whatsapp number database that contribute to the final objective and discard those that do not;
3. Ensure the current flow works and make changes if necessary;
4. Implement a pull system that avoids maintaining a high stock and allows the customer and market demand to be the triggers for production;
5. Achieving perfection . This may be a far-fetched goal, but the idea behind Lean Management is to foster an ambition for continuous improvement and to keep up with the evolving needs of customers and other stakeholders.
Increase the value and efficiency of processes and teams
If we apply these principles to financial management - in the CFO 5.0 era - we will certainly find ways to improve or eliminate unnecessary processes , which will automatically mean an increase in efficiency . In other words , it will allow us to save time and money, while building a more agile and attractive company for any stakeholder.
The pillars for efficient Lean Management
Continuous improvement
Continuous value creation is one of the main pillars of Lean Management. Companies that want to grow with Lean must understand what customers need and work towards that.
Valuing the company's Human Resources
Companies are made up of people and efficient business management must be based on respect for the human component. A motivated team is a more productive team.
Team-focused leadership
The manager's role is to decide what to do, but also the team's priorities. Lean Management empowers employees with the autonomy to make decisions, the opportunity to master their area and the purpose behind their work.
The importance of customer feedback for Lean Management
A very interesting tip that can help you skip several steps in certain circumstances is to rely on customer feedback. It is possible (and even likely) that certain processes are completely irrelevant to customers. In this case, it is worth considering whether they are really relevant to your company.
How to move towards Lean Management
The secret lies in technology. The CFO of the future, in addition to a global vision of the business and finances, must have a deep understanding of the capabilities that technology offers. This will allow resources to be optimized, processes to be improved and decision-making to be based on rigorous data. Technology is inevitable and, fortunately, it is here to help.
The origin of Lean Management
If we look even further back, we see that this concept initially emerged in production or manufacturing systems – with Ford and Toyota as the most notable examples. But those who created the most comprehensive and complete definition of what a lean system is were James Womack, Daniel Jones and Daniel Roos, in the famous book "The Machine That Changed the World”. This definition is divided into 5 principles:
1. Identify the value for the customer , or in other words, what they are looking for and what they are willing to pay for;
2. Determine the value stream , that is, find the elements of the indonesia whatsapp number database that contribute to the final objective and discard those that do not;
3. Ensure the current flow works and make changes if necessary;
4. Implement a pull system that avoids maintaining a high stock and allows the customer and market demand to be the triggers for production;
5. Achieving perfection . This may be a far-fetched goal, but the idea behind Lean Management is to foster an ambition for continuous improvement and to keep up with the evolving needs of customers and other stakeholders.
Increase the value and efficiency of processes and teams
If we apply these principles to financial management - in the CFO 5.0 era - we will certainly find ways to improve or eliminate unnecessary processes , which will automatically mean an increase in efficiency . In other words , it will allow us to save time and money, while building a more agile and attractive company for any stakeholder.
The pillars for efficient Lean Management
Continuous improvement
Continuous value creation is one of the main pillars of Lean Management. Companies that want to grow with Lean must understand what customers need and work towards that.
Valuing the company's Human Resources
Companies are made up of people and efficient business management must be based on respect for the human component. A motivated team is a more productive team.
Team-focused leadership
The manager's role is to decide what to do, but also the team's priorities. Lean Management empowers employees with the autonomy to make decisions, the opportunity to master their area and the purpose behind their work.
The importance of customer feedback for Lean Management
A very interesting tip that can help you skip several steps in certain circumstances is to rely on customer feedback. It is possible (and even likely) that certain processes are completely irrelevant to customers. In this case, it is worth considering whether they are really relevant to your company.
How to move towards Lean Management
The secret lies in technology. The CFO of the future, in addition to a global vision of the business and finances, must have a deep understanding of the capabilities that technology offers. This will allow resources to be optimized, processes to be improved and decision-making to be based on rigorous data. Technology is inevitable and, fortunately, it is here to help.