The role of executive leadership in lean manufacturing

Leadership can make or break the lean manufacturing journey, and it starts at the very top with the executives. Getty Images

Most of you have reviewed articles, read books, attended seminars, and gone to conferences where the author or speaker stressed the need for executive leadership to lead in a lean way. They say your lean journey cannot be successful without executive leadership. So what does that look like—not generally, but specifically?

Of course, no single approach to executive leadership applies to all companies, whether they’re in the same industrial park or on opposite sides of the globe. Nevertheless, successful lean executives do have a few predictable characteristics.

Is Executive Leadership Really Necessary?

Here is a question to set the stage: Is it really necessary for executive leadership to play a meaningful role in a manufacturer’s successful lean journey? The answer is a resounding yes! Note the key word, successful. Lots of companies dabble in lean, perhaps make some tactical improvements, and invest resources until some other shiny object comes along. Maybe they practice lean for a few months or perhaps a few years before their efforts wane.

Executives set the tone. They make decisions that enable the lean journey to start and to continue. They maintain constancy when other business issues make it easy to disband the lean investment and move on. The executive leadership—and only the executive leadership—can make and put into action the decision to stay the course.

Does the executive leader need to be the smartest person in the company when it comes to lean methods, techniques, and tools? Absolutely not. Other people can fill those roles. Does the executive leader need to personally set the lean strategy and direction? Again, no. They should be aware and knowledgeable, but there will be many hands involved in these activities. Regardless, without executive leadership, your company’s lean tactics and strategies are doomed to mediocrity or failure.

Lean Executive Characteristics

What basic characteristics define an effective lean executive? A few come to mind. Think of the following characteristics as a composite description.

General Lean Knowledge. Effective lean executives grasp at least the basic concepts of lean manufacturing: the constant pursuit of waste elimination, the focus on flow, and the reduction of variation. They lead decisively while demonstrating humility and respect. They manage with data and facts, and demand others do likewise.

They learn about lean manufacturing from sources both inside and outside the company. Inside, they learn from the lean improvements being made through project teams, workforce education and training, and lean strategy workshops. Outside, they learn through reading, networking, and attending targeted conferences—the Lean Enterprise Institute’s annual summit and FABTECH education sessions come to mind.

Connect Lean Investments With Business Results. Lean executives make the connection between outputs from lean investments and business results. They understand that most investments and actions result in tangible financial results in the aggregate, but there will be times when they cannot make the direct connection between a dollar spent on lean and a “dollar plus” being returned.

Applying prudent judgment and a long-term outlook, they know making the investment is still the right thing to do. They understand that, ultimately, a successful lean journey makes the organization more financially viable and resilient.

Set Expectations and Ensure Accountability. Executives hold people accountable, a fact that applies whether or not their organization is on the lean journey. Effective lean executives ensure there’s a balance of lean topics in the accountability portfolio. They set expectations (such as operating principles) and hold the organization accountable, such as with cascading performance measures rolled up and down between the top floor and the shop floor. They keep the expectations and a few critical performance measures visible and alive. No one doubts that the lean executive keeps an eye on these matters and that there will be repercussions if the organization drifts from what is important to sustain the lean journey.

Stay the Course. Effective lean executives stay the course even when there is pressure—from within the organization, customers, or financial stakeholders—to do something else. It may be something strategic, like “Do we realign the processes or equipment in a complete value stream to enable enhanced flow?” Or it could be something tactical, like “Do we go ahead with a kaizen event even though we are at risk of missing a shipment again and the customer’s supplier-development person is in the next room?” Lean executives understand that backpedaling and saying “Just this one time” damages their credibility. When they stay the course, people notice.

Gemba Walks. These show that executives are genuinely interested in how operations are performing. They also help them develop a real sense of the operations. By using the “go see” technique and asking targeted questions, lean executives gain credibility and put themselves in a better position to hold the organization accountable for sustained performance.

Demonstrate Humility and Respect. One of the fundamental parts of the lean body of knowledge is that we treat each other with humility and respect in the workplace. This does not mean we abdicate responsibility or cease to manage. On the contrary, it means we do these functions in ways that recognize people’s contributions. We listen and act on good ideas, show a willingness to learn, and treat people the way we would like to be treated. This is an essential ingredient for long-term success.

The Actual Doing

These characteristics help define what executives can do, but the real test is in the actual doing. A lean executive can tick all the boxes—from knowing the lean basics to demonstrating respect and humility—but they’re useless without good execution.

One exercise is to identify three specific actions executives can take for each characteristic. For instance, three actions for gemba walks could include:

1. Identify where the executive might go for a gemba walk and develop six to eight questions for the executive’s personal walkabout sheet. For instance, when talking with the production supervisor: What is the takt time of this operation? When talking to a production operator: Who are your internal customers and suppliers?
2. Schedule at least one gemba walk per week that enables at least five direct interactions with a mix of people in a targeted area.
3. Conduct the gemba walk and debrief for significant observations and learning points with another executive and lean sensei. The gemba walk can occur not just on the shop floor but also in administrative offices and production support areas. Mix it up and have some fun while doing serious work, and talk about how the lean executive is making an impact.

Lean Executives Make the Difference

The executive characteristics described here paint a useful picture, but you can probably think of a few others that are especially relevant to your situation. If you are the executive, consider how to turn these ideas into action. These actions will drive behavior (yours and others’).

If you are the lean advocate who is trying to help your executive leadership begin to model lean behavior, consider the points raised here as a basis for a substantive discussion. If the executive is open to exploring effective lean leadership, then treat it as a process rather than a one-time event.

If the executive is not receptive, avoid conversations that might suggest inadequacy or be interpreted as a personal attack. Instead, try to cajole, push, nudge, encourage, or do whatever is appropriate in your situation. Ensure that everyone knows the lean journey’s objective: to make the company stronger and more viable while also creating a safe, stable place of employment.

Lean executives make the real difference. By modeling lean behavior, they create a workplace where people want what is good for themselves and for the organization. If they sustain this practice, you have executive leadership … lean style.