How to build lean execution?Focus is key. If the action is not focused, the result is often half the effort. So how do you do it?First, the big picture needs to be clarified, i.e., the organization's annual strategic goals. Second, it is necessary to have focus, that is, to break down the strategic goals and clarify the most important things at the moment. To help organizations focus, various architectural tools can be used, such as Balanced Scorecard (BSC), OKRs (Objectives, Key Results), or OGSM (Objectives, Goals, Strategy, Measurement). The execution of a focus requires a certain methodology, including limiting work-in-progress and focusing on flow efficiency and customer value. First of all, the restriction of semi-finished products, that is, WIP (work in progress), refers to the work in progress and the work-in-progress in the manufacturing process.
Too many work-in-progress can slow down work, increase wait times, extend completion times, and even reduce team velocity to zero. Too much WIP in the manufacturing industry will not only increase costs, but also affect quality and production efficiency. Therefore, limiting work-in-progress is one of the keys to focused execution. Next, we will take a closer look at how to focus on flow efficiency and customer value, and how OGSM can be used in practice to help organizations focus. Lean Execution: The Dangers and Solutions of Too Much WIPWhen an organization is dealing with too many WIPs, this is often a sign of overload. Overloaded organizations face three (sunk) costs: wait costs, switching costs, and delay costs. These three costs not only reduce the flow rate and affect product quality, but also increase the hidden costs of the organization and ultimately affect the organization's bottom line. So, what kind of problems can too much WIP bring?And how to solve it?
The problem caused by too much WIP is not only the speed of flow and the quality of the product, but more importantly, it increases the hidden costs of the organization that customers will not pay. So, what is the goal of limiting semi-finished products?How can we better meet customer needs?Focusing on flow efficiency may provide some answers. In the history of water conservancy in our country, there is a Pan Jitao who is recognized as an "expert in the control of pornography". He found that the root cause of the flooding of the Yellow River was sediment accumulation, so he proposed a solution to "harness water and attack sand". He managed to control the flooding problem by increasing the speed of the water so that it could carry away the sediment from the bottom of the riverbed. The same principle applies to Lean Execution's focus on flow efficiency. By speeding up the flow and reducing the number of semi-finished products, customer requirements can be met more smoothly. Flow efficiency includes the flow of things, the flow of information, and the flow of work.
The flow of things is to use lean thinking to make "things" move, to move materials, semi-finished products, projects, and the work at hand, to improve the process and reduce waste in the process of creating value. The flow of work is the use of agile workflows, and the use of daily stand-ups to get people moving, constantly sprinting, and continuous improvement. In an organization, daily stand-ups are very important. It emphasizes action-oriented and avoids frivolous and lengthy presentations, blame-shifting quarrels, and bosses' swearing. Meetings without focus waste attendees' time and rarely address customer concerns. Therefore, the focus on limiting semi-finished products and improving flow efficiency is to better meet customer needs and improve work efficiency. From strategic operations to objective management to performance operations and day-to-day operations, Lean Execution provides a complete operational framework that can help organizations grow and move forward.
By focusing on limiting work-in-progress and improving flow efficiency, you can better meet customer needs and ultimately achieve sustainable organizational growth. How do you think organizations can be better able to work more efficiently and meet customer needs?Feel free to leave a comment to share your thoughts.