Lean is often misunderstood as a cost-cutting tool that threatens jobs, causing fear and resistance. But Lean’s true purpose is growth through the creation of opportunities. It is very important that your team understands this. The question is how can you help them to not feel worried and apathetic about it?
Unfortunately, when profits fall, many companies cut direct labor, even though it’s only a small part of total costs. Real savings come from reducing overhead, fixing inefficient processes, and boosting sales. Of course that is much harder. Path of least resistance and all. Toyota’s Lean success was never about layoffs, it was about empowering employees to solve problems, and improve quality, speed, and profits.
Today, customers, not companies, set prices. The only way to win is by cutting waste, what the Japanese call Muda (waste), Mura (unevenness), and Muri (overburden). And not just on the factory floor, but rather everywhere in the business.
Lean works best when it means improvement for everyone. By making work better and easier, employees are engaged, customers are satisfied, and profits grow. When jobs are easier, everyone wins.
The key is to replace fear with opportunity. Real change happens when people see the benefits. If improvement means layoffs, morale drops and progress stalls. But when it leads to promotions and new opportunities (such as new products), it builds a culture of growth.
Efficiency should mean redeploying talent and promoting top performers. Give people a chance to step up, and improvement becomes a path to career advancement.
Never forget that culture matters…a lot. Leaders must value people, reinforce positive changes, and trust employees’ desire to contribute. If you focus on growth, talent, and opportunity, you will unlock real improvement.
