Lean Growth

At a first glance a process or activity in a company may seem to be necessary. However, from the customer perspective many activities are not perceived to be adding value. They are seen as waste. Businesses that follow the Lean Growth philosophy are committed to identifying and minimising waste. When waste is eliminated there will be resources available that can be used to grow the business.

Even though it is important to have the ambition and courage to grow, this in itself is not enough. The growth process becomes too difficult, even impossible, without a consistent strategy and good tools.

Lean Growth as a mind set
Not until you combine an efficient use of resources with growth do you see a difference. Businesses that adopt this approach grow faster than their competitors. When freed up resources are reinvested in areas where there is room for growth, the business as a whole grows faster. Investment is made only in necessary fixed assets. It isn´t a matter of growth or productivity – it´s the combination of both.

Top management commitment
Lean, or Agile, requires that everyone participates and that job security is a prerequisite. However, in order to achieve the best results a common view in top management is a must. If the drive for change isn´t visible at the top it will never spread throughout the organisation. Therefore it is important to start with Lean Management.

The methods for implementing Lean or Agile Management should not be seen as a project with a beginning and an end. It´s an ongoing process that is introduced into the company and remains there forever. Lean becomes a way to run the business.

Strategic focus
Lean Growth takes a holistic view on business development starting with an assessment of what your strategic position really and what this implies for your performance. Are you achieving your full potential? Do you have the right strategy to achieve it?

Ohde & Co uses the unique, evidence based, analytical tools and concept developed by PIMS – Profit Impact of Market Strategy – to help clients make the strategic decisions that are right for your particular situation.

Over a period of more than 40 years PIMS® has researched how different external and internal factors impact the performance of a business e.g. profitability, growth and productivity. This research, and the resulting analytical models, is based on more than 20 000 business years of data provided by client companies across many different industries, markets and business cycles in connection with project assignments. By learning from successes and failures from peer businesses (= businesses with your strategic profile) you can learn to do – and what not to do – to achieve sustainable performance improvement.

Read more about PIMS Consulting

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LN GRWTH  – the book
Over a period of more than 15 years Ohde & Co has worked with client companies to develop Lean Growth in practice.

In his book LN GRWTH™, Sven Ohde has accumulated some of the findings from this work. He describes two different kinds of waste in a company:

 Pure waste – that everyone can see or that is a divergence from what is normal – e.g. rework or misunderstandings and

Forced waste – that is a structural issue, e.g. an inefficient factory layout or lack of a holistic view.

- Forced waste easily starts to become an accepted state and so no one gives it any further thought. “It has always looked like this”. Structural and organisational inadequacies create forced waste – it isn´t a matter of people not working hard enough, they are just doing the wrong things, says Sven Ohde.

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Extract from LN GRWTH in Pdf

 

Our methods and tools

There is no lack of methods and tools, Lean or Agile, on how to work with different improvement areas within a company. The challenge is to select one or a few that gives the best results. We have put together a few brief descriptions on how we work with certain problems in our series "Ohde solutions". If you are interested, please contact us and we will send you a copy!

So far the series include the following titles;

No I, Rapid Business Assessment
- How we give an operational assessment in one week. Useful facts for a new CEO or when you are about to aquire a company or have just done so.

No II, Range Management
- Describing for example how to deal with long tails of low volume products or customers. Substantial savings is possible without harming customer relations!

No III, Customer Value Analysis
 - Describing the well known method, CVA, for how to analyse customer preferences. Do you spend on the features that customers actually prefer and that makes them buy from you? 

No IV, Supply Chain Set Up
 - How to set up your supply chain to match your business environment rather than your selected IT-system. You can save tied up capital and improve service levels without replacing the system!


The Lean growth philosofi