Lean for Small Businesses

Why is the Lean approach so important for Small business?  There are some key aspects underlying the Lean approach which are vital to the success of small businesses, as follows:

  • A focus on costs and competitiveness
  • A focus on value and performance
  • A focus on sustainability

This approach enables a developing organisation improve its competitiveness / efficiency, primarily (but not exclusively) by means of cost / process management, and on performance / effectiveness and sustainability, primarily (again but not exclusively) by means of customer value. 

One key criticism of Lean for small businesses in the early days of Lean thinking was the focus on eliminating waste and reducing cost, whereas small businesses already regard themselves as “lean” (from a waste perspective) and as being much more interested in management approaches that help a company grow and develop.  However, when one takes the entire scope of what is embodied in Lean, it quickly becomes clear that Lean is probably the best structured management approach for developing small businesses.

Some key Lean principles for small businesses include:

  • Specify value from the customer’s perspective
  • Describe the value streams / key service processes and measure them
  • Have customers influence strongly the means of generating value from a product / service including its means of production
  • Create flow by eliminating waste
  • Implement continuous improvement

Change management focuses on the behavioural aspects of developments in an organisation and endeavours to bring about positive “winning” attitudes in users both as individuals and as teams.  One may say that Change Management is just about moving from point A to point B, but this can get complicated within an organisational setting – for example, one has to be careful of the “weakest link”. An example of the most critical elements of success in an organisation is that “one can lead a horse to water, but one cannot make it drink”. For example, a successful Change technique is that of “What’s in it for me?” Please refer to the separate section in this website on Change Management for further discussion.

As experts in Lean, Change Management, management systems and concepts we are confident that we can add real value to clients in improving their organisations through Change management systems, Lean and other key management concepts, by providing a cost effective focus, and by bringing essential skills and experience to the work. Contact John Melvin at (087) 240 5197 or visit us at  www.melvinconsulting.ie to discuss how we can assist you in improving your organisation.