Lean Connections

A guest posting by Andrew Dillon

Extraordinary times call on us to look again to the core of the Toyota revolution and how we can make it our own

Strange things happen in a crisis. Consider, for example, that some companies, in retrenchment mode, are cutting back on investments that not too long ago they were eager to make in learning and implementing the principles of the Toyota Production System. At least part of the market for improvement seems to be shrinking, in other words, at precisely the moment when just about everything in the marketplace seems to need improvement.

This is more than just strange. After all, Toyota’s management system was forged as a response to severe economic hardship, its basic mindset tempered by the threat of catastrophe. Circumstances have changed over the years, of course, but the Toyota system has proven to offer a potent and strikingly reliable way to survive-and even thrive-against fierce competition, in hard times as well as good. Its signal strengths – relentless cost cutting, commitment to people and dedication to long-term vision – are made for crisis.

Clearly the message is not lost on some businesses, where leaders are intensifying their focus on learning lean. But other companies remain a puzzlement. Why, when they stand to profit from it most, are some retreating from efforts to reap the benefits of the Toyota revolution?  read more »

“There is a better way for everything. Find it.”

Thomas Alva Edison

Turbulent times provide ample opportunities for success, if we approach things with the right frame of mind.

by Adam Zak 

In my role as an executive recruiter specializing in helping companies with Lean transformation, I’ve been spending a lot of my time lately speaking with people all over the world who are wrestling with complex decisions. I thought I’d share some of my observations with you, and in turn, hope that you will share your thoughts with me. 

Everywhere we turn, there’s advice heralding “How to manage in a crisis,” or “New rules for surviving the crunch.” Just the other day I heard a discussion on PBS involving business writers trying to agree on a title for what the economy is going through. And there was no consensus (imagine that, from business writers). 

Crisis Breeds Opportunity 

Craig Barrett, recently retired CEO of Intel told Newsweek readers, “There is a general rule in business life: market share is won or lost during transitions. You cannot save your way out of a recession, you can only invest your way out.” No one is denying that cutting costs is essential to surviving 2009, but we Lean disciples have always practiced a different philosophical approach. As we look for ways to eliminate waste and improve productivity, we are always focused on getting better. In early February Muhtar Kent, Coca-Cola’s CEO told the Wall Street Journal “I’ve been through this movie in smaller versions a number of times in the past…times like these are not an excuse to sit back and ride out the storm.” And this week, at a global sustainability conference in Chicago, I spoke with Rick Frazier, Coke’s VP Supply Chain, who told me they were leveraging their Lean & Green efforts even more dramatically during this time of uncertainty. 

“A recession creates winners and losers just like a boom,” observed Mauro F. Guillen, a professor of international management at the University of Pennsylvania’s Wharton School in BusinessWeek. Let’s chose to be among the winners.  read more »