What Should an Entrepreneur Know About LEAN Philosophy?

When a new business acquaintance asks me: “How do you spend your time?” Sometimes, without thinking I simply spout out “Lean Six-Sigma!” If they have ever heard of the term, they look at me like I’m talking about advanced calculus or maybe I’m some kind of crazy nerd! (Well, the nerd part could be true!) Then I tell them that it’s not just a math thing… it’s a management philosophy that gives everyone associated with a company the freedom to improve their work and the environment where they do that work. You don’t need to be a Super Math Whiz to understand that if you take care of people they will take care of you in return with ROI.

In the business world you need to have a platform to communicate the direction that you are going and Lean Six-Sigma is one of the best. The problem is that it’s called Lean Six Sigma, which means nothing to many business people. So, if you tell them its name, they run the other way as fast as they can! (Sometimes literally, but usually just in their heads… I have seen both.)  If it was named “Freedom Philosophy” or “Philosophy to make your work easier” maybe they would listen. Regardless, any way you name it, the Lean Six Sigma philosophy is that you become more profitable when you create an environment where stakeholders feel safe and enjoy sharing their ideas.

You’re probably thinking that sounds pretty simple. Well it can be, but it does require a lot of discipline and follow through.  Walt Disney built an amusement park empire around a single thought “everyone leaves with a smile!” Of course this also requires building a business that has a great culture and an even better business philosophy.  Walt Disney had to develop a company culture (workplace attitude) that encouraged his stakeholders’ (employees’) desire to make sure nothing superseded making people happy. Walt Disney was successful at building a great culture, but he knew it would require a high level of commitment to the process, adequate resources, and lots of creative freedom for his employees/stakeholders, who he affectionately referred to as “Cast Members”.

People that are starting a business from nothing have a big mountain to climb. They must master operating every department of a business with the least amount of resources. The 10% that make it find ways to reduce or eliminate the waste and variation just on their own survival skills.

A startup should look into LEAN as a way of thinking before they even start the business. Learning how to listen to the voice of cash flow, voice of the process, and the voice of the customer early on will have a dramatic impact on your approach. Startups cannot afford to waste their resources. Focusing on things that the customer will not pay much for or don’t understand, will put you in the unsuccessful start up group faster than you can say “Back to the cubical I go!”

As a startup’s best ROI, I would recommend reaching out to folks that are actively practicing the art of continuous improvement. Most of the good LEAN Six Sigma people would be happy teach you how to be a LEAN Six Sigma thinker. Remember that it is just a way of thinking, a mindset, looking for ways to reduce waste and create innovation.