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6/3/2015 Lean Thinking – Increased Innovation | Ideas for Leaders
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10.13007/019
Ideas for Leaders #019
Lean Thinking – Increased Innovation
Key Concept
Being Lean should not impact an organization’sinnovative environment. In fact, freeing up resourcescan actually increase innovation. Lean thinking shouldbe instilled in a company through leaders; however,middle-managers can also apply simple strategies tosimulate creativity at all levels of the organization.
Idea Summary
In this White Paper, the author looks at howorganizations can free up necessary resources topursue their overall business strategies. Identifying the‘waste’ and ‘complexity’ in a company can free uppeople and space needed to do so, calling this processbecoming ‘Lean.’
As we Lean the business, says the author, enthusiasmis generated, ideas start to surface, and we recognizethat there are opportunities here we didn’t realizeexisted. Those opportunities were buried behind thetime and effort required to manage the ‘stuff’ in thebusiness no one cared about. The author gives theexample of a number of companies that havesuccessfully focused on leaning out what people didnot want and essentially developing new business thatreally excited the market, citing Cirque du Soleil andNetflix as examples.
Furthermore, he proposes that ‘Lean’ and ‘innovation’,although odd bedfellows can work successfullytogether. Commenting on a recent survey done of top-level executives that asked what the largest barrierswere to innovation in their companies, he highlightsthat their answers pointed to a short-term focus and alack of resources. Lean addresses those issues.
The author also says that contrary to popular opinion,a post-recession environment may be one of the besttimes to pursue an innovative agenda. Applying Leansupports the resources requirement in a company anddrives the right culture that facilitates innovation,regardless of the economy.
ShareAuthors
Cross, Barry
Institutions
Queen’s University School of Business
Source
White Paper
Idea conceived
2008
Idea posted
January 2013
DOI number
Subject
Cost StrategyBusiness Model InnovationCreativity and InnovationProductivity
6/3/2015 Lean Thinking – Increased Innovation | Ideas for Leaders
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Business Application
The author outlines three steps as the basic startingpoint for becoming Lean:
1. Apply some basic Lean principles to identify the waste andcomplexity in the organization.
2. Foster a creative culture. Build on the empowerment andenthusiasm generated by Lean. Balance efficiency with creativity.
3. Fail early and often. One of the easiest ways for innovations toderail is failing to identify the target customer. Get models,prototypes, simulations and other demonstrations in their handsearly to hone in on their sense of value.
The author also suggests avoiding being too tacticaltoo early, without the proper supporting culture andexecutive enthusiasm behind it. It is only whenorganizations recognize this as a philosophy and wayof life that is applicable in good times and in bad, andreally understand it, that it sticks.
For middle managers, he admits that organizationally,Lean needs to come from the top; it needs to be partof the culture, and culture is driven by the behaviourof leadership. However, where this is new to acompany and leadership hasn’t quite bought in yet, headvises a five stage 5xS strategy to exercise on the areaaround theirdepartment: Sort, Straighten, Shine, Standardize,and Sustain.
License Notice
This content is provided free-to-accessfor your own personal research,development and private study.
A license must be acquired for use byorganizations, for employee developmentor as a learning resource. To purchase alicense and learn about other partnerbenefits contact us.
Standard terms and conditions apply.
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What to Learn from Pirates
References
Lean Innovation. Barry Cross. Queen’s ExecutiveDevelopment Centre White Paper (June 2008).
Further Reading and Relevant Resources
Barry Cross’s profile at Queen’s School of Business on LinkedIn
Queen's School of Business Executive Education profile on IEDP
6/3/2015 Lean Thinking – Increased Innovation | Ideas for Leaders
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Why Scaling Up Is No Longer the OnlyStrategy
Creating Innovative Business Models
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