Lean Project Management Principles

What if 80% of your work doesn’t even matter to your customer? In Lean, the ultimate goal is to create value for the customer. Yet, many processes are cluttered with activities that don’t contribute to that value. By breaking work down into Value-Add (VA) 🟢 , Non-Value Add (NVA) 🔴 , and Necessary Non-Value Add (NNVA) 🟡 activities, you can focus your efforts on what truly matters—and eliminate the rest. 1️⃣ Value-Add (VA) 🟢 These are the steps that directly enhance your product or service, the ones your customers are willing to pay for. Examples: - Machining a precision component - Assembling a product to customer specifications - Final quality checks that ensure reliability Why It Matters: - Directly increases customer satisfaction and product value - Drives revenue by focusing on what customers actually care about 2️⃣ Non-Value Add (NVA) 🔴 These are activities that do nothing to enhance the product or service, often just adding cost and delay. Examples: - Excessive material movement - Redundant inspections - Overprocessing steps that don’t improve quality Why It Matters: - Eliminating these wastes frees up time and resources - Streamlining processes leads to faster delivery and lower costs 3️⃣ Necessary Non-Value Add (NNVA) 🟡 - Some tasks don’t add direct value but are essential for safety, compliance, or technical reasons. Examples: - Mandatory regulatory inspections - Safety checks - Some administrative processes Why It Matters: - While these activities can’t be eliminated, they can often be optimized or minimized - Improving their efficiency reduces overall waste without compromising quality or compliance

Manufacturing Efficiency is More Than Numbers…It’s Transformational Science that Delivers Value. In my experience of deploying continuous process improvement, I’ve seen one truth repeat itself: small changes in cycle time create massive changes in organizational success. Consider a real-world example from a Fortune 500 distribution center. The facility struggled with a 12-hour lead time from order receipt to shipping. When we applied Manufacturing Cycle Time (MCT) and Manufacturing Cycle Efficiency (MCE) analysis, the data revealed that only 35 percent of production time was true value-added work. The rest was waiting, unnecessary movement, or inefficient scheduling. Through Lean tools like value stream mapping, Kaizen events, and standard work design, we cut average lead time from 12 hours to 8 hours. That 4-hour reduction meant faster customer fulfillment, increased throughput capacity, and a remarkable financial impact, more than 3.2 million dollars in annualized savings through reduced overtime, lower inventory holding costs, and fewer expedited shipments. The return on investment went far beyond financials. Employees who once felt pressured by bottlenecks were now empowered to work in a smoother, more predictable system. Morale increased as they could focus on craftsmanship and problem-solving rather than firefighting. When people feel their contributions directly improve performance, you build a culture of ownership and innovation. I have led these transformations across industries, from aerospace to government services and the outcomes are consistent. The combination of measuring cycle efficiency and acting on it with Lean methods delivers scalable success. Organizations gain profitability, employees gain pride, and customers gain trust. Continuous improvement is not just about efficiency metrics. It is about unlocking hidden capacity, protecting margins, and most importantly, enabling people to thrive in environments designed for excellence. That is the real power of Lean.🔋

There's a gap between digital transformation and operational excellence. A gap that can be narrowed with a lean approach. For true operational excellence, we need technologies to work seamlessly across departments and functions. But...companies are investing and 'going digital' without fully aligning new technologies with existing systems, processes and people! So people are often spending more time figuring out how to use a new tool or duplicating efforts across disconnected systems 🤷♀️ Done right...a lean approach can provide a structured framework for integration that takes into account organizational culture and people.  Here's how it can help: 1️⃣ Sets clearer goals for the technology 💠 Lean thinking and tools help you figure out what problem the technology should solve and how it will make things better. 💠 Discussions about the technology involve the people doing the work so people feel involved from the start and are more likely to support the changes. 2️⃣ Improves processes before adding technology 💠 Lean thinking and tools encourages cleaning up messy or inefficient workflows first, so you don’t end up using technology to automate bad processes. 💠 Streamlining things first ensures the technology works smoothly and brings real improvements. 3️⃣ Builds a mindset for ongoing improvement (not once-off solutions) 💠 A Lean approach shapes a culture where change is the norm and people are always looking for ways to do things better. 💠 It encourages small, manageable changes and pilot programmes that build trust and confidence in new technologies. 4️⃣ Helps people adjusts to change 💠 A lean approach emphasizes people development, good communication and training so that everyone understands how to use new technology and why it’s helpful. 💠 Leadership development is part of a Lean approach (it is in my book anyway) so leaders are coached and trained to address concerns and enable smooth transitions. 5️⃣ Supports data management 💠 Advanced technologies produce a LOT of data, and a lean approach helps teams focus on what’s important and use that data to improve processes. 💠 People then feel empowered when they see how data can help them work smarter, not harder. 6️⃣ Standardizes how the technology is used 💠 A lean approach ensures new technology works across different teams and locations by standardizing how it’s used. 💠 It provides a framework for scaling up successful changes so the pace of change is not overwhelming for people. Basically...a #lean approach helps us to invest in technologies that can actually fix problems. It ensures that we involve people along the way and make work easier for everyone. Any thoughts on the topic? Leave your comments below 🙏

Stop guessing your growth path. Map it instead with the Lean Canvas model. Last year a client was losing cash after a bad investment. Their Board wanted a clear plan, but management's ideas were scattered. Pressure rose as their cash runway shrank. I used a blank Lean Canvas and met with management. Box by box, we turned fuzzy thoughts into clear statements. In a few hours, the team could see the whole business on one page. A week later, decisions sped up, waste was cut, and revenue began increasing. The Board praised the new focus because just one sheet had replaced weeks of endless slides. 1. Start with the Problem box because pain fuels purchase: ⇀ List the top three headaches your market hates. ⇀ Ask customers for blunt complaints. ⇀ Rank pains by urgency and frequency.  ⇀ If the pain is weak, the plan is weak. 2. Name the Customer Segments who wake up with that pain: ⇀ Avoid lumping everyone together - be precise. ⇀ Describe one real person, not a demographic blur. ⇀ Note where they already search for help. ⇀ Specific faces drive focused solutions. 3. Your Unique Value Proposition attracts attention: ⇀ Write it like a headline your customer would repeat. ⇀ Highlight the biggest outcome, not features. ⇀ Short, clear value wins the click. ⇀ Keep it under ten words. 4. Now sketch your Solution: ⇀ Draft three bare-bones features solving each top pain. ⇀ Mockup screens or sketches quickly. ⇀ Show them to five prospects tomorrow. ⇀ Speed beats perfection in early design. 5. Channels tell you how messages travel to wallets: ⇀ Pick the two cheapest tests before buying ads. ⇀ Leverage existing communities and email lists. ⇀ Measure response time and cost per lead. ⇀ Cheap learning outruns expensive guessing. 6. Revenue Streams prove the idea can feed itself: ⇀ State exactly who pays, how much, and how often. ⇀ Compare price to the pain’s current cost. ⇀ Pilot a single pricing tier first. ⇀ Real cash beats hypothetical guesses. 7. Analyse Cost Structure for sustainability: ⇀ List the three largest costs and make them variable. ⇀ Negotiate monthly, not annual, contracts. ⇀ Lean costs preserve runway for learning. ⇀ Automate before hiring. 8. Key Metrics keep founders honest on progress: ⇀ Choose one north-star metric and two support numbers. ⇀ Link each metric to habit or revenue. ⇀ Track weekly in one simple dashboard. ⇀ What gets graphed gets fixed faster. 9. Finally, name your Unfair Advantage: ⇀ This is the asset rivals can’t match. ⇀ Lean on unique data, patents, or proven community. ⇀ Document founder expertise that speed cannot buy. ⇀ Without moats, margins leak. 10. Don't forget to summarise your high-level concept and identify early adopters too. Review our lean canvas model weekly to stay on track with your strategy. What's your favourite strategic model? ------- ♻️ Repost to help others in your network. Follow Jonathan Maharaj FCPA for more insights on accounting, finance and leadership.

𝗛𝗼𝘄 𝗧𝗼𝘆𝗼𝘁𝗮 𝗕𝘂𝗶𝗹𝗱𝘀 𝗣𝗿𝗼𝗯𝗹𝗲𝗺-𝗦𝗼𝗹𝘃𝗶𝗻𝗴 𝗖𝗮𝗽𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗶𝗻 𝗘𝘃𝗲𝗿𝘆 𝗘𝗺𝗽𝗹𝗼𝘆𝗲𝗲 "𝘕𝘰𝘣𝘰𝘥𝘺 𝘪𝘯 𝘛𝘰𝘺𝘰𝘵𝘢 𝘩𝘢𝘴 𝘢 𝘣𝘭𝘢𝘤𝘬 𝘣𝘦𝘭𝘵 𝘪𝘯 𝘛𝘗𝘚 𝘰𝘳 𝘩𝘢𝘴 𝘢 𝘤𝘦𝘳𝘵𝘪𝘧𝘪𝘤𝘢𝘵𝘪𝘰𝘯 𝘪𝘯 𝘛𝘗𝘚. 𝘈𝘯𝘥 𝘯𝘰𝘣𝘰𝘥𝘺 𝘪𝘯 𝘛𝘰𝘺𝘰𝘵𝘢 𝘸𝘪𝘭𝘭 𝘴𝘢𝘺 𝘵𝘩𝘢𝘵 𝘵𝘩𝘦𝘺'𝘳𝘦 𝘢𝘯 𝘦𝘹𝘱𝘦𝘳𝘵 𝘢𝘵 𝘛𝘗𝘚. 𝘛𝘩𝘦𝘺 𝘸𝘪𝘭𝘭 𝘴𝘢𝘺 𝘸𝘦'𝘳𝘦 𝘫𝘶𝘴𝘵 𝘭𝘦𝘢𝘳𝘯𝘪𝘯𝘨." -Jeffrey Liker This profound statement reveals the secret behind Toyota's legendary improvement culture—and why it's so different from most organizations' approaches. 𝗧𝗼𝘆𝗼𝘁𝗮'𝘀 𝗧𝘄𝗼 𝗕𝗿𝗲𝗮𝗸𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗹𝗲𝘀 Principle 1: Leadership as Learning Champions  While many organizations delegate improvement to "experts" and "certified specialists," Toyota leaders do the opposite. They actively engage—going to the gemba, seeing problems firsthand, learning alongside their teams, and modeling continuous improvement. When leaders personally invest in the transformation, employees naturally follow. This creates unstoppable momentum where improvement becomes everyone's responsibility. Principle 2: Everyone as an Improvement Leader  Toyota's genius lies in democratizing improvement. Rather than creating hierarchies of "qualified improvers" through belt systems, they believe that people closest to the work are best positioned to identify and solve problems. This approach unleashes the collective intelligence of the entire organization, turning every employee into a problem-solver. 𝗧𝗵𝗲 𝗧𝗼𝘆𝗼𝘁𝗮 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸 -Universal Capability Building: Every worker learns core Industrial Engineering functions. There's no special class of "improvement people"—improvement is woven into everyone's daily work. -Systematic Long-term Development: Their HR program develops problem-solving capabilities in all employees over 10 years through three structured phases. This isn't about creating a few experts; it's about building organizational DNA for continuous improvement. -Humble Learning Culture: As Liker noted, no one claims to be a "TPS expert." Everyone, from the shop floor to the C-suite, maintains a learner's mindset. This keeps the organization open to discovering better ways. -Leadership as Chief Learning Officers: Toyota leaders don't delegate improvement—they champion it. They model curiosity, embrace problems as learning opportunities, and show that everyone, including themselves, is still learning. 𝗧𝗵𝗲 𝗕𝗼𝘁𝘁𝗼𝗺 𝗟𝗶𝗻𝗲 True lean transformation doesn't need certifications, belts, or designated experts. It needs engaged leadership and a culture where everyone—from the CEO to the newest employee—embraces the mindset: "We're all still learning." The question isn't whether your people have the right credentials. The question is whether your leaders are willing to roll up their sleeves, get uncomfortable, and learn alongside their teams. What direction is your organization heading?

In my previous post of this series, I spoke about the toughest question in any transformation: “𝑊𝐡𝐲 𝐜𝐡𝐚𝐧𝐠𝐞 𝐰𝐡𝐚𝐭’𝐬 𝐚𝐥𝐫𝐞𝐚𝐝𝐲 𝐰𝐨𝐫𝐤𝐢𝐧𝐠?” Once the why is clear, the very next question is: “𝐻𝐨𝐰 𝐝𝐨 𝐲𝐨𝐮 𝐚𝐜𝐭𝐮𝐚𝐥𝐥𝐲 𝐦𝐚𝐤𝐞 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐰𝐨𝐫𝐤?” Midway in my career journey, I learned this the hard way. We rolled out a new HR module… but ignored the process. People weren’t ready, workflows were outdated, and adoption was shaky. The result? Frustration, resistance, and endless fixes. That’s when I discovered what I now call the 3P Rule of Transformation: 1️⃣ People—Transformation is 80% about adoption. Train, coach, and most importantly, inspire them. 2️⃣ Process – Simplify before you digitize. Automating broken processes only accelerates chaos. 3️⃣ Platform—Choose tech that truly fits your culture and integrates seamlessly—not just what looks shiny in a demo. 💡 One tip that always works: Involve end-users in testing. When people feel heard, they transition from skeptics to champions. Technology may be the engine, but people will always be the fuel. In the next post, 𝐼’𝐥𝐥 𝐬𝐡𝐚𝐫𝐞 𝐬𝐭𝐨𝐫𝐢𝐞𝐬 𝐟𝐫𝐨𝐦 𝐭𝐡𝐞 𝐡𝐮𝐦𝐚𝐧 𝐬𝐢𝐝𝐞 𝐨𝐟 𝐜𝐡𝐚𝐧𝐠𝐞 𝐦𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭—𝐚𝐧𝐝 𝐰𝐡𝐲 𝐩𝐬𝐲𝐜𝐡𝐨𝐥𝐨𝐠𝐲 𝐨𝐟𝐭𝐞𝐧 𝐦𝐚𝐭𝐭𝐞𝐫𝐬 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 𝐭𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲. 🧠 > 🤖 Over to you: Have you ever seen a transformation stall because one of the “3Ps” was ignored? PS: Link to Part 1/6: Learnings from Enterprise Transformation https://lnkd.in/gjWn8_B7 #Technology #Tranformation #HumanResources

Identify value-adding activities to optimize your business operating cash flow management 🎯     As an experience finance professional, I often emphasize the critical importance of cash flow management🎗. Cash is the lifeblood of any business. Careful management of your business cash flow is crucial to ensuring your ability to grow and sustain your operations. One key strategy that can help you as business owner optimizing your operating cash flow is by identifying and focusing on value-adding activities within your business. By adopting this strategy, you can optimize your cash flow, reduce costs, and drive sustainable growth 📈. Value-adding activities itself are tasks or processes that directly contribute to delivering a product or service that customers are willing to pay for. Here's several tips on how you can identify your business value-adding activities: 1️⃣ Analyze your business value chain: Break down your business processes to identify each step from raw material acquisition to final product delivery. 2️⃣ Evaluate each activity: Assess each step for its contribution to customer value and profitability of your business. Activities that significantly enhance customer satisfaction or reduce costs should be prioritized. 3️⃣ Streamline your operations: Eliminate or optimize non-value-adding activities whenever possible. This can help free up resources and reduce operational costs that directly improving your cash flow. 4️⃣ Explore potential adoption of technology: Automation and data analytics can provide insights and streamline repetitive tasks, improving both performance and cash flow. 🤔 As business owner, have you identified and optimized value-adding activities within your business? Please share your experiences and insights in the comment section. 🙏 If you're gearing up to scale your SME or early-stage business to new heights, let's connect. Together, we can explore strategies to optimize your business cash flow and strengthening your financial foundation. #CashFlowManagement #BusinessOptimization #BusinessTransformation

#Strategy isn’t just about the destination — it’s as much about how you get there.   In my experience, when organisations take strategic decisions as one-off, they lose time, clarity, and momentum. They end up with inconsistency in decision making and perhaps end up with poor choices and missed opportunities. In fact, I would not call them strategy at all. They are just that - one-off decisions.   The latest Harvard Business Review article on Lean Strategy Making strongly resonates with me inasmuch as strategic decisions are concerned. It argues that strategy should be treated as standard work—structured, repeatable, and deliberate. Much like operations. Such an approach reduces waste and improves outcomes.   It begins with taking decisions grounded in facts, exploring multiple alternatives, and committing to a focused, resourced choice. For this kind of approach, one has to keep at the centre, a strategic priority pipeline. This is nothing but a dynamic list of high-value goals, ranked by urgency and impact. Moreover, every outcome—whether pursued, delayed, or dropped—is logged and tracked. It becomes a learning for future decisions.   At Spice Money, we follow a similar model. Our mission to empower #Bharat is disaggregated as clear priorities. Be it expanding our #Adhikari network or entering underserved regions or launching inclusive services - each initiative goes through the same disciplined flow: gather data, evaluate options, act decisively, and track outcomes. This structure helps us move ahead with confidence and stay aligned with our larger purpose - of growing and growing right.   If you’re looking to make strategy a true capability in your organisation, this HBR article is worth your time: https://lnkd.in/d8BiRBiV   #LeanStrategy #PurposeDrivenLeadership #SpiceMoney #StrategyExecution #DigitalBharat Ramesh Venkataraman| Rashmi Aggarwal | Ram Rastogi 🇮🇳| Harsh Mittal| Usha Murali| Kuldeep Pawar | Venkatramu J | CA. SUNIL KUMAR KAPOOR | sameer nagpal | Rohit Ahuja| Pankaj Vaish | Dr. Binu Varghese | Rohit Sood| Srikrishna Narasimhan | Pankaj Vaish | veena mankar I Subramanian Murali | Mayank Jain

You poured money into your agile transformation. Your teams are busy. Standups, retros, all the ceremonies—check. The reports say velocity is up. But look past the new roles, the vanity metrics, the maturity assessments. It still feels slow. Where’s the business impact? The old playbook says double down. Fix the teams. Bring in more coaches. More training. Push the flywheel harder. But most leaders I talk to are out of patience—and out of budget. So they give up. The theater rolls on. The old project mindset creeps back in. Here’s the hard truth: You can’t fix this at the team level. The problem isn’t your teams. It’s the game they’re forced to play. After 15 years helping companies build real agility, here's a better pattern that emerged as more sustainable and effective: stop trying to fix the teams. Go upstream. Fix the system they’re stuck in. Start or Pivot to the company or portfolio level. Create a company-level initiatives Kanban. apply the patterns and best practices of product ownership at the portfolio level. Use Lean Product Management to derisk your enterprise bets. When leaders engage at this level, they stop being passengers in a transformation that’s happening to them. They become the drivers. They get the power to lead real change. They can set priorities and make tradeoffs that create clarity for dozens of teams. Suddenly, alignment and collaboration become possible. Autonomy and Purpose unlock motivation and engagement in the trenches. They can limit work in process. That creates focus. It signals real leadership. They can reorganize around outcomes. Break painful dependencies. Point capacity at what matters most. I’ve seen it firsthand. A few well-placed interventions upstream lead to outsized gains: faster delivery, more innovation, clearer teams, real value. This video is an excerpt from a case study where leaders at a global futures exchange changed the trajectory of their SAFe-based Product Operating Model transformation when we went upstream to introduce a product-oriented leaner portfolio management approach. Going upstream used to be the maverick move. Most consulting firms avoided it. (can you guess why? hint - think of their incentives / business model ) Now, it’s going mainstream. Leaders like you want real agility ROI—not vanity, not theater. What's one small way you could go upstream next week? (if you want some ideas - happy to discuss)

Value Stream Mapping activity done with stick-notes A Value Stream Map (VSM) is a great tool in your Lean journey but sometimes can be difficult to know where to start and to get buy-in from all stakeholders. Primarily a VSM outlines the critical steps (both material & information) in a process (value stream) from start (Supplier) to finish (Customer) together with the processing time, processing rate, volume, inventory & staff involved. It highlights the bottleneck/restrictions or waste so that improvement effort can be applied in the most needed areas. The ultimate outcome is better value to the Customer (reducing waste and increasing the Value proportion). I’ve used a simple activity when introducing VSM, that can be a great entry point, the colour of the sticky-notes is one of the keys: 1.      Assemble your team, agree on the scope & the intended outcome. 2.      Step out the process using stick-notes (noting the process owner), determine if the steps are Non-Value Add (pink sticky-notes), Business-Value-Add (light blue) or Value-Add (light green-shown also with a tick). 3.      Determine the step process time (the time to complete that step-shown in dark green) 4.      Included the wait or delay time between steps (red sticky-notes) 5.      Finally highlight the wasteful areas that could be targeted for improvement (red cross) 6.      Adding up all the dark green and red sticky-notes provides the total lead time. The real Value to the Customer is calculated by the Value-Add time (light green) divided by the total lead time. The higher the proportion, the better customer focus. 7.      Then you can transfer the sticky-note map onto a VSM diagram If you’ve read my posts, you’ll know that I like to start simple. In the comments is a link to a bit more information on Process Mapping & VSMs. See a link in the comments to further information of VSMs & Process mapping.