The Culture of Lean – Part 1

by Dave Rizzardo

Lean has proven to significantly enhance the competitiveness and profitability of companies
throughout the world, and some have been transformed into organizations that are characterized
as World-Class; however, far too many companies have fallen short in developing the Lean,
continuous improvement, culture that is essential for long-term sustainable excellence. To
understand why this occurs, we must try to grasp what is really meant by a culture of Lean. Other
more familiar components of Lean such as the various tools and techniques or the deadly 7
wastes are more tangible and easier to document and clearly explain; however, an understanding
of the culture within which these tools operate is absolutely critical for realizing the power of Lean.
In this article, I will try to provide at least a glimpse or a sense of what it truly means to be living
within the culture of Lean. This is “Part 1” of a 3 part series on this topic.

Consider the following statement in reference to Toyota’s competitiveness from an article titled,
“No Satisfaction at Toyota”: “It is rooted in an institutional obsession with improvement that
Toyota manages to instill in each one of its workers, a pervasive lack of complacency with
whatever was accomplished yesterday.”1 I believe the four word phrase “institutional obsession
with improvement” both efficiently and effectively captures the very nature of a Lean culture. If we
delve into the meaning of this phrase and how it relates to ongoing excellence, we can gain
valuable insights into how to develop, or adjust, a company’s Lean journey, and guard against
faulty assumptions and definitions that can throw organizations off-track. So, we’ll refer back to
the phrase “institutional obsession with improvement” as we build upon our understanding of the
culture that most every organization desires, but too few exhibit. However, let’s first ask the basic
question, “Why go Lean at all?”

Why must a company that is deemed successful, maybe even considered tops in their industry,
need to concern itself with improvement, let alone being obsessive about it? If it ain’t broke, don’t
fix it; right? Wrong! Wrong! Wrong! That cliché has run its course and should now be considered
outdated, irrelevant, and never spoken again; consider it extinct. What killed it off? Competition
has destroyed its applicability. The chaotic competitive environment of today demands that you
continuously rethink the current state of your products, processes and procedures as to how they
are helping you flow value to your customers, even if not considered broken by whatever
“brokenness” measure you choose to utilize. Rather, you must break it apart and make it better.
If you don’t, I assure you that there is a competitor, or future competitor somewhere, who is
finding a way to steal your business and profits, or expanding into new market opportunities that
you never even considered because you’ve been busy patting yourself on the back and
celebrating your success. Yes, we do need to celebrate successes, but not for too long.
Nowadays, to even stand still, you must be moving forward, very quickly. This is the reason why
every single organization in every sector must “go Lean.”

Let’s consider what we can learn about a Lean culture by peering into a Lean facility such as one
of the Toyota facilities, or any facility which may be regarded as a “model of Lean.” If you’ve ever
toured one of these places or viewed a videotape of one, I’m sure you saw many excellent
examples of the application of Lean techniques such as visual controls, cellular manufacturing,
standard work, evidence of quick setups, etc. However, this is like viewing only the tip of the
iceberg, that which can be seen above the water line. If somehow you were able to dive deep
below the water level of Toyota’s success, you’d discover that the tools and techniques are
supported and engaged via a continuous improvement culture. This is a culture where the
workforce views their jobs not only as performing some specific activity, but rather one that also
embraces the idea that they are part of a never ending improvement effort of rooting out and
eradicating waste of all forms. The Lean tools and techniques are just some visible
manifestations of this mindset which isn’t easily grasped on a tour. Ultimately, the result is
streamlined flow of value to the customer, and improved profitability and competitiveness. In
Jeffrey K. Liker’s book The Toyota Way he elaborates on this “iceberg model” of the Toyota
Production System (TPS) in explaining their culture of continuous improvement, and he includes a
quote from a Toyota employee that ends with the statement “It’s a part of who we are.”2 Well said.

In summary to this point, many companies are extremely successful in creating the visible Lean
advancements which are protruding above the water surface: the 5S’s and such; however,
nothing is often found below the surface providing the stability and long-term strength. Surface
Lean, or what also can be thought of as “technique Lean” just isn’t good enough any more. The
various Lean techniques and tools which we implement to eliminate waste are all critical
components of the overall strategy, but these methods do not define the strategy completely.
Make sure there’s something lying underneath the water level at your company, an obsession
with improvement. In “Part 2” of this 3 part article, we will continue on our journey by asking the
question “Do we really need to be obsessive about improvement?” Stay tuned.

Dave Rizzardo is MTES’s Lean Services Manager and can be reached at 410-706-4774 or daver@umd.edu.

1
Fishman, Charles. "No Satisfaction at Toyota." Fast Company 111Dec 2006 82. Web.23 Oct
2008. <http://www.fastcompany.com/magazine/111/open_no-satisfaction.html>.
2
Liker, Jeffrey. The Toyota Way: 14 Management Principles from the World's Greatest
Manufacturer. New York: McGraw-Hill, 2004. Print.