The Characteristics Of Successful Organizations Essay

1770 Words May 18th, 2016 8 Pages
Through various studies, lean transformations have shown to fail 70% of the time. Why this significant failure rate? When you look at successful lean transformations, organizations are capable of improving productivity by 40%, reducing unit costs by 30%, improving customer service by 100%, reducing cycle times by 90%, and improving quality by 300%. Unsuccessful organizations are basically too slow with their strategy deployment and continuous improvement efforts and thus world class business results are illusive.

If you examine the characteristics of successful organizations, you will find that speed is a common denominator, the time it takes to achieve extraordinary business results. All front running organizations are able to reach the needed results faster than their competitors. I now like to use the term velocity instead of speed as velocity has the element of direction. An organization can be doing things fast but frenetic without business results because it lacks direction.

Achieving results with velocity entails the basics of; communication of a clear and concise strategy, people development and engagement, flatter organization structures, a culture of continuous improvement, value stream steps melted together with minimal WIP, customer requirements known by everyone, and knowledge sharing.

Accomplishing these basics can be grouped by four key components, leadership and mentoring, process design and visual value streams, organization structure for sustainment, and…

Related Documents