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Unleashing Disruption through Broad Step Change and Lean Enterprise Principles

In today’s rapidly evolving business landscape, companies face the challenge of not only adapting to constant change but also achieving significant breakthroughs to stay ahead of the competition. While continuous improvement is essential for maintaining operational efficiency, it is equally crucial for organizations to develop a broad step change strategy that fosters innovation and long-term growth. 

Embracing broad step change is no longer an option but a necessity for companies to remain competitive and survive. The pace of technological advancements, market disruptions, and changing customer expectations requires organizations to continuously innovate and adapt their strategies.  This could involve embracing emerging technologies, such as artificial intelligence, blockchain, and Internet of Things, to enhance operational efficiency and create new value propositions.

One approach that has decades of proven success, (specifically within Toyota), is the concept of “Kaikaku,” a Japanese term that translates to “broad step change.” This strategic approach enables organizations to leverage their current continuous improvement system, (Lean), while disrupting their industry by implementing radical and transformative changes.  For example, Toyota has consistently introduced groundbreaking technologies, advanced manufacturing processes, and innovative solutions to address societal challenges.  Leveraging the power of Kaikaku and Kaizen, Toyota continues to be widely recognized as one of the most innovative companies in the world. 

 

Kaikaku requires a culture that fosters innovation, risk-taking, and continuous learning. When organizations have a Continuous Improvement (CI) system or model in place, they can leverage this culture and mindset to drive broader transformative step change.  By fostering a culture of innovation, organizations can encourage employees to explore new ideas and approaches. This mindset of innovation can be extended to embrace broader transformative changes, allowing employees to think beyond incremental improvements and consider radical changes that can drive significant advancements.

Here is how:

Step 1- Understanding Broad Step Change- Kaikaku:

Kaikaku is in complete alignment with incremental improvements with a keen focus on creating revolutionary changes. It involves questioning existing processes, challenging assumptions, and reimagining traditional ways of doing business through new, exciting and innovative ways. By embracing Kaikaku, organizations can challenge the status quo and pave the way for disruptive innovation while exceeding customer expectations.

Step 2- Identify the Need for Disruption through Value Stream Mapping:

Before embarking on a Broad Step Change- Kaikaku journey, it is imperative to identify and define the need for disruption within your organization as well as the overall industry that you serve. This requires a comprehensive analysis of market trends, customer demands, and emerging technologies. By understanding the evolving landscape, organizations can identify areas where transformative changes are required to gain a competitive edge. A phenomenal way to identify and define the needs for broad step change, which is often overlooked, is through Value Stream Mapping.

As you map the value stream, it is critical that you analyze the steps that directly contribute to meeting customer demands and aligning with market trends. These value-adding activities can provide insights into the aspects of your current operations that are working well and meeting customer expectations. In addition, value stream mapping will highlight areas where your organization is struggling to keep up with market demands or where emerging technologies could potentially disrupt the industry. Finally, by bringing together individuals from different areas, such as sales, marketing, product development, and operations, you can tap into their diverse perspectives and insights. This collaboration can help identify market trends and potential disruptive technologies from various perspectives.

Step 3- Communicate and Align Vision:

For step change to be successful, it is essential to communicate and align the vision across the organization. A Continuous Improvement system provides a framework for effective communication and collaboration, creating a shared understanding of the organization’s goals and objectives. By gaining buy-in from employees and aligning their efforts towards broader transformative changes, organizations can create a culture that embraces and supports step change initiatives.

Step 4- Take an Iterative and Adaptive Approach:

Kaikaku is not a one-time event but an ongoing process. It requires organizations to adopt an iterative and adaptive approach to change. By continuously monitoring the impact of broad step changes, organizations can gather feedback, make necessary adjustments, and drive further innovation. This iterative approach ensures that disruption becomes a continuous and sustainable process.

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Benefits of Dual Strategy:

1. Synergy:

The combination of continuous improvement and broad step change strategy creates a synergy that accelerates overall organizational progress. Incremental improvements contribute to the foundation of success while step change initiatives unlock new growth opportunities.

2. Innovation:

Continuous improvement fosters a culture of innovation by empowering employees to identify and implement small-scale improvements. This culture of innovation can then be channeled towards broader step change initiatives, leading to breakthrough innovations.

3. Adaptability:

The integration of both approaches ensures organizations are equipped to navigate uncertainty and adapt to changing market dynamics. Continuous improvement provides the flexibility needed to respond to immediate challenges, while broad step change strategy enables companies to proactively shape their future.

Two smart warehouse employees looking over a tablet during a digital transformation

Summary

Organizations with a CI system or model in place can leverage the culture of innovation, risk-taking, and continuous learning to drive broader transformative step change. By embracing these principles and providing the necessary resources and support, organizations can create an environment where employees are empowered to think big and pursue radical improvements.  Embrace Kaikaku and Lean Enterprise principles and unlock the power of disruption in your organization!

Understandably, the idea of developing a broad step change strategy in an effort to disrupt your industry is a complex undertaking. But when you partner with experienced Lean Enterprise consultants, the journey can be fast, efficient and inspiring!

To learn more about the Incito Consulting Group’s Broad Step Change, Kaikaku process, please contact us or give us a call at 866-697-LEAN (5326)

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