Lean Frontiers: Are they differences in getting middle management on board from getting executive management support?
Are there differences in getting middle management from executive management on board for 1) developing the lean enterprise and 2) direct engagement on their part? What are the differences, if any?
Posted on May 9, 2015
Archives by Tag 'Financial'
Jeff Liker

Dan Jones: The Financial Consequences of Lean

By Jeff Liker, - Last updated: Thursday, February 3, 2011
Why is it so hard to see the financial consequences of lean? Failure to answer this dilemma has derailed many lean initiatives. This is not such a problem if top management really understands the significance of focusing on getting everything to flow right-first-time-on-time to customers. Like top management at Toyota and Tesco, they know that good processes lead to good results. Alternatively if you have an experienced Sensei who knows where the gold lies buried and who has worked on similar situations before, there is a good chance that they can help you to deliver the kind of results you ...

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Art Smalley

Art Smalley: Financial Benefits

By Art Smalley, - Last updated: Tuesday, January 25, 2011
Historically Toyota Motor Corporation has been a very profitable company over the past 60 years in what is generally a very cyclical business. Before its recent problems Toyota was racking up annual profits for several years in the $15 Billion + range and had not reported an annual loss since the early 1950's. Various problems and the global economic slowdown brought those numbers to a grinding halt in 2010 but the figures appear to be picking up again it seems. Regardless the question remains why does (or did) Toyota produce such great financial results and in contrast why do other companies ...

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The Lean Edge

The Lean Edge: Why is it so difficult to see the financial benefits from lean?

By The Lean Edge, - Last updated: Tuesday, January 18, 2011
Why is it so difficult to see the financial benefits from lean?

Tom Johnson: Financial results such as revenue, cost, and profit are by-products of well-run human-focused processes

By , - Last updated: Thursday, February 18, 2010
Dear “Lean Edge” Colleagues: The cause of Toyota’s current crisis is found, in my opinion, in its very recent surrender to Wall Street pressure to grow continuously, as virtually all large publicly-traded American businesses, including those that pursue “lean” practices, have attempted to do for the past 30 years or more.  Steady growth in size and scale presumably improves profitability by conferring increased control over market prices and decreased costs. Unfortunately, as Toyota has discovered, the strategy never works. The flaw in this finance-oriented growth strategy is the belief that profitability improves by taking steps aimed at increasing revenue and cutting costs.  ...

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