You're Doing Lean Wrong! How Australian Manufacturers Can Embrace Lean, AI and Lessons from Spotify to Enable Innovation, Collaboration, Efficiency, and Growth
Lean has developed a bit of a bad rap in recent years, but it’s time for Australian small and medium-sized. manufacturing leaders to take a fresh look in episode 1 of Manufacturing Tech Australia, our guest Nigel Dalton, a social scientist and expert in lean dan AI shared some powerful insights on how business leaders can grow and streamline their business using lean principles, AI and lessons from Spotify. Let’s dive into these ideas and learn how you can use them to drive innovation, collaboration, efficiency, and growth in your manufacturing business.
EMBRACE THE DATA, INSIGHT, BELIEF, AND BET (DIBS) FRAMEWORK:
According to Nigel, adopting the DIBB framework is one of the most effective ways to make decisions in volatile, uncertain, complex, and ambiguous environments. This data-centric model was first implemented at Spotify and has since been adopted in various industries. Start with data, develop insights, form beliefs, and then make bets or experiments to see if they hold true.
FOCUS ON OPERATIONAL EFFICIENCY:
Nigel emphasises the importance of focusing on operational efficiency rather than solely on top-line growth. He said, "Instead of trying to desperately grow the top line 10% for our company, we removed 10% of the [waste]. And made more money again."
IMPLEMENT LEAN PRINCIPLES BEFORE AUTOMATING:
Automation should only be implemented after processes have been simplified and made repeatable. As Nigel mentioned, "You can do just as well by eliminating waste, buying better systems, not implementing systems poorly, over the top of inefficient processes."
ADDRESS THE “HIPPO” PROBLEM:
The "highest paid person's opinion" (HIPPO) can often dominate decision-making in organisations. Nigel suggested that acknowledging and addressing this issue could lead to significant improvements in organisational decision-making and collaboration.
PRIORITISE THINKING AND REFLECTING:
Nigel emphasised the need for modern businesses to prioritise thinking and reflecting over the “knowing” management culture. This approach can enable better decision-making and help businesses stay ahead in a constantly changing world.
INVOLVE EMPLOYEES IN PLANNING AND EXECUTION:
Nigel mentioned the Hawthorne studies, which showed that involving people in the planning and execution of experiments led to increased productivity. Foster employee engagement and participation in decision-making processes to improve efficiency.
EMBRACE THE NEXT GENERATION OF MILLENIAL LEADERS:
The younger generation of leaders has a fresh approach to collaboration, problem-solving, and embracing new technologies. A Nigel observed, a new generation [is emerging].. a very much diverse breadth of humanity thinking. " By investing in these future leaders and fostering an environment that supports their innovative thinking, you can ensure your business remains competitive and adaptable.
In summary, lean may have a bad image but it can offer substantial benefits for Australian manufacturing businesses when implemented correctly. The insights shared by Nigel provide a solid foundation for reflection and action. As a leader in the manufacturing sector, now is the time to reconsider your approach to lean and technology adoption.
Ask yourself how your organisation can benefit from embracing the DIBS framework, focusing on operational efficiency, and involving employees in planning and execution. Consider the generational shift in leadership and how embracing a new mindset can drive innovation and growth in your organisation.
Reflecting on these points and taking action, you can create a more resilient, efficient, and collaborative organisation. Remember, change begins with you – start making positive changes in your business today, and watch your company thrive in the competitive landscape of Australian manufacturing.