Manufacturers are climbing on the Lean bandwagon in droves. The IndustryWeek/MPI Census of Manufacturers, released in November 2007, shows that nearly 70% of all plants in the U.S. are currently employing Lean Manufacturing as an improvement methodology. But is Lean right for every company?

A further look at the same IW/MPI survey may provide a clue. Only 2% of companies who responded to the survey have fully achieved their objectives and less than a quarter of all companies (24%) reported achieving significant results. That leaves 74% of the responding companies admitting that they are not making good progress with Lean -- at least at the time of the survey.

Through my experience consulting with a variety of companies implementing Lean, I've learned there are four major reasons that companies fail to achieve benefits:

1. Senior management is not committed to and/or doesn't understand the real impact of Lean.
2. Senior management is unwilling to accept that cultural change is often required for Lean to be a success.
3. The company lacks the right people in the right positions.
4. The company has chosen Lean as their process improvement methodology when a different process improvement program -- or none at all -- would have been the better choice.

Before deciding to implement Lean or any productivity improvement program, management must first examine its business strategy and ask the tough question: Will a productivity improvement program such as Lean contribute directly to the company's strategy? The answer is not always obvious.

Some companies' strategic focus, for example, is on competitive market positioning through new product development. In these companies, process improvement and productivity measures may not be perceived as contributing directly to their competitive advantage. You can bet, therefore, that in these companies senior management may not support a Lean initiative if waste reduction on the shop floor is the focus. And, without the full support of top management, the likelihood of success of any process improvement program is jeopardized.

On the other hand, in companies where strong operational capabilities are viewed as a competitive advantage, top management will be more receptive to the process and productivity improvements that Lean (or other process improvement programs) can achieve. But they still need to be "sold" on its benefits, particularly if its champions were at the division level or in the manufacturing or operational areas. Why? Top management needs to fully understand the various stages of implementing Lean so they won't be tempted to pull the plug before results are achieved. In short, they need to accept Lean as part of their overall operations and business strategies and support it all along the way.

The second major reason companies fail to realize Lean benefits is their top management teams miss the point that Lean transforms an organization's culture -- and they don't want theirs transformed! Most productivity improvement programs, including Lean, result in enhanced communications, more empowered teams, and the positioning of decision making at the lowest possible levels. These are simply the realities. If management is not ready to let go of the reigns and let this happen, most productivity improvement programs will fail.

To be successful, top management, therefore, must be willing to accept and even drive culture change. The top team must invest in the transformation process in terms of both time and money.

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