In my 35yrs of consulting in Lean Systems I have experienced successes but also failures in implementing and sustaining a Lean Operating System (I define failure as making gains and sliding back or making gains and plateauing). My partner in the Lean Learning Center, Jamie Flichbaugh, and I learned with our work with Chrysler that lean is not about some set of tools but rather it’s the principles (thinking) that define purpose and value and subsequently are the foundation for success.

I’m currently embarking on a lean journey with a company that has failed once and I needed to remind myself of all the reasons that contribute to failure so I can, to the best of my and the company’s ability, develop a recovery plan. The following is my list of top causes of failures. Likely not comprehensive, but close. The first is obvious.

1. Implementing the tools. Lean is not about simply implementing a set of tools but rather about developing a culture (principles/beliefs). Implementing tools without first understanding purpose can be exhilarating with quick wins and visible application. However, these gains are not sustainable and often lost without a culture that supports and promotes daily progress.
2. Leaders see lean as a program or one-off project, are not actively engaged and do not model the lean behaviors. I have very often experienced leadership behaviors that, knowingly or unknowingly, minimize any chance of sustained success. The #1 responsibility of leadership is to develop a culture that supports the mission, goals, and objectives of the organization and that includes institutionalizing a culture of sustained continuous improvement. We develop our belief system over years based on our experiences. The same premise applies to lean culture. The lean “belief system” requires that leadership repeatedly provide the experiences that will develop lean beliefs. It will not take years but it will take frequently exhibiting experiences that positively affect lean beliefs (thinking) and subsequently impact the results.
3. No formal lean management system / lack of daily routines to sustain improvements. The effectiveness of lean application requires a management system to assess progress, effectiveness, and opportunities. A Lean Daily Management System (LDMS) provides the structure and behavior for leaders, managers and teams to visually manage performance, identify abnormalities and drive problem solving. It also provides an excellent opportunity to repeatedly exhibit lean behaviors (see number 2)
4. You do not take the noise out. I do not mean actual noise (although sometimes that is the case); I mean virtual noise (chaos). Employees at all levels cannot think and contribute to CI in an environment of chaos. Nor can they practice or advance the tools and techniques of lean. They typically are just trying to get through the workday without incident. Taking the chaos out, the noise, should be at the forefront of company’s lean objectives. Stability is key. Stabilize before optimizing. In chaos you waste valuable resources reacting versus dedicating resources to being proactive. Establishing a common way of thinking and a common way of working is the roadmap to stability.
5. Limited or lack of employee engagement. Most every organization today promotes employee engagement and employee contributions. The mistake is “expecting” employees to contribute without providing the two key necessities. First, they must be given the opportunity. It can be waste elimination programs, problem solving, kaizen events and so much more. Second, they must be given the skills to contribute when the opportunity arises. Without these two conditions it is unreasonable, and unfair, to expect employees to be engaged and contribute. It is that simple.
6. Limited accountability for actions. Organizations will always hold individuals and departments accountable for their performance, the “numbers.” Seldom do we hold them accountable for their behaviors.
7. Misalignment with strategy, objectives, and tactics. Lean efforts must be visibly aligned and connected to the company’s strategy and objectives. Often lean efforts focus on producing local improvements but have minimal “big picture” impact. McKinsey research shows transformations falter when organizations do not align efforts to the strategic position.
8. Measuring only the results. Measuring and making decisions based solely on lagging indicators contributes to an environment of reaction and firefighting. Act on leading indicators.” Twenty percent of activities produce eighty percent of results. The highest predictors of goal achievement are the 80/20 activities that are identified and codified into individual actions and tracked fanatically. Connecting real work to a goal.” (4 Disciplines of Execution ®Franklin Covey)
9. Insufficient/ineffective capability for surfacing and solving problems. Every lean tool either surfaces or solves a problem, or both. You cannot fix a problem you don’t know about, and without effective strong problem-solvers, you fix symptoms, not root causes. Surfacing and solving problems should be everyone’s responsibility and not the responsibility of a select few.
10. Fear of Change. Lean asks employees to change how they work, to expose problems and propose improvements. This requires psychological safety, skills development, recognition, and incentives. “If people fear blame or lack skills, they’ll resist or do superficial work.” Lean Enterprise Institute
11. Broken Connections. Lean requires cross-functional and cross-level alignment. Silos create blame between functions and levels, block communication, create a “hand-off” mentality,” ambiguous ownership and inhibits systemic fixes.
12. Resource constraints and Business Conditions: Obviously, any resource constraint (people, budget, skills, etc.) will impact the ability to implement a lean system.’ Caution–Do not overpromise and underdeliver. Understand the capabilities. Business conditions may require a shift in approach and in the short-term objectives.
13. Early success leads to complacency (“we are lean” trap) Lean is seen as a destination and not a journey. Organization often declare victory and stop improving.
14. System Conflicts. Lean systems consist of four major elements: Thinking (behavior); Accountability (measurements, reviews); Business Systems (HR, IT, quality) and Tools. Each element must be aligned and working directional as a “System” toward common objectives.