By Fernando Berrocal

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The lean methodology promotes low resource consumption and waste production as a formula that creates - and encourages the flow of - value for customers.

Lean is a system for creating value for your final customer that mainly requires fewer resources while also producing minimal waste.  Any type of business can apply this technique, and all entrepreneurs can integrate it into their leadership style.

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So, what is the lean business system–how is it actually implemented in startups?  What are some of the most prominent tools and strategies involved? 

The building blocks of lean businesses cover a spectrum, ranging from customer processes (such as sales and customer service) to logistics and operations. In the competitive marketplace of 2022, any type of business must be able to provide value to customers in order to thrive. The lean business concept enables businesses to provide value in a dynamic market.  While lean business development enables firms to scale and flourish in a morally upright manner, it also promotes ongoing overall development, respect for other workers, and persistent attention to obtaining consumer satisfaction.

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Enhance the Overall Enterprise

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To accomplish this, there are two primary concepts to consider: “moving parts” and resources. Business operations, various marketplaces, and the organization's strategic plans are some of the most common moving parts. Engineering, manufacturing, distribution, etc. relate to raw materials (in the sense of production). 

Intellectual resources can be challenging to manage for any business. Time, expertise, and skills must be shared with your staff. It’s the “big picture” that determines how a lean business will grow. Knowing that resources are finite, you must maximize them. Since that´s complex for any expanding firm, lean is perfect for fledgling enterprises. All organizations, however, must comprehend how value moves through all of their moving pieces to enhance the overall business. Value stream mapping (VSM) is one approach to achieve clarity (and maximize efficiency) in this area. Your objective is to build a lean organization where all active components contribute to the organization's overarching objective.

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Eliminate Waste

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If it doesn’t offer value to the client, it’s considered waste. However, keep in mind that “waste” is defined differently depending on type of industry, area, and team.  In this methodology, waste refers to any process, function, or activity that doesn’t benefit consumers.  If something keeps the overall business from creating value, it’s waste.  Classic instances of waste include lengthy processes, overworked staff, overly-complex feedback, and pointless, protracted decision-making. 

In lean development, the discovery and eradication of waste must be included in daily tasks. Each team member needs to be responsible for their actions. Value is maximized through the utilization of delivery procedures. You must go through the tasks, how they will be carried out, and how you can sustainably give consumers maximum value. This has to begin from the top; in other words, even CEOs must demonstrate a customer-focused strategy in their everyday leadership. 

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Improve the System by Integrating Quality

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When you attempt to instill a methodology at every level of an organization, two things are true. Once more, there are a lot of moving pieces–and limited resources. Building quality into the system is a foundational idea of lean business development. A system that can expand, regulate, and automate is the final objective. If you standardize and automate uninteresting, repetitive, or error-prone tasks, you can concentrate on innovation, growth, development, and continual improvement. 

By integrating industry standards and robust procedures, lean business development may be leveraged to enhance quality. Ultimately, employees that work for lean organizations develop quality. They finance the equipment that makes it possible for businesses to operate more rapidly; and utilize their resources more effectively.

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Control Flow to Deliver Faster

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Organizations use a proportion of capacity to measure utilization. This indicates that increasing capacity may hinder and slow value delivery. Managing flow is central to the lean philosophy. Clients must receive finished products. Rapid value delivery to clients is a priority for lean firms. The majority of firms are overburdened and unable to provide value rapidly. To produce lasting outcomes rapidly, employees must be able to concentrate. Work-in-progress (WIP) must be constrained at the organizational level if you wish to decrease it.  When flow is managed, time-efficient delivery becomes possible.

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Deferral Commitment

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Deferral commitment is a key component of lean business development. It encourages businesses to make decisions in a short time frame–so they can call shots based on the most recent facts. Customers expect their data to be used in guiding decisions. If you make uninformed decisions they won't be the proper ones. Although it can be expensive, there are significant long-term advantages in adopting this philosophy. 

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Respect Your Team

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Lean business growth requires finding - and keeping - the greatest employees.  Your organization must foster a culture where the best ideas may prosper. Without a strong sense of regard for others, this is unlikely to occur.  Think about it: lean is about eliminating overhead for customers and value providers. These organizations must cherish their employees by establishing a proper working environment.  Such a setting serves as a space where the greatest ideas are considered and competent workers become loyal employees.  Furthermore, leaders are better able to comprehend the requirements and preferences of both clients and staff.

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Create Knowledge

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Many businesses were founded by a small group of people.  These original teams used procedures they personally created for the immediate functionality of their organization. Any enterprise hoping to expand over the medium- and long-term can´t maintain this kind of foundation. To attain the speed and accountability required for long-term growth, businesses must design, record, and continuously improve routines following the Lean concept of generating knowledge.

This primarily relies on your employees. You need to attract talented individuals to your team; ones that are driven to learn, share, and connect.  Don’t forget to explore new horizons with existing and future employees. To guarantee expansion of knowledge, lean businesses must have rules in place that encourage team stability–and the retention of highly talented personnel.

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To summarize, the main principles of the lean business methodology are efficiency improvement and waste elimination. There is a vast supply of free resources and  tools regarding lean startups that can assist you in getting started and continuing to improve–check them out online, at a local library, or even networking/entrepreneurial events in your area.

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