During a recent SPE luncheon Hess presented their results and achievements in implementing Lean in their oil and gas operations. They demonstrated outstanding successes and improvements in performance, reducing costs and more.
Lean is about maximizing customer value while minimizing waste, increasing revenues and improving results. Following their success they are expecting their suppliers and contractors to demonstrate commitment and implement Lean programs! So what should you consider in establishing a Lean program to show commitment and enhance your competitive advantage?
Lean needs to be a sustainable key strategic commitment cascading from the top down throughout the organization. Without management’s commitment Lean is just another flavor of the month initiative.
It is up to leadership to communicate and lead on a continuous basis the implementation of a Lean improvement program. They must cascade accountability and seek out opportunities for improvement in every work process ranging from accounting, management, operations and customer acquisition.
Culture encompasses the values and behaviors of an organization in its execution of the strategy and delivery of results. It is management’s responsibility to nurture the right attitudes and create an environment that motivates its valued resources to achieving the business objectives. Management must make Lean thinking, acting and behaviors a cornerstone of every aspect of their daily business.
Rome was not built in a day; however, the ROI from Lean successes can start in less than a week. Companies have realized bottom line improvements of 25 to 45%. With a continuous program and winning results you can demonstrate your enhanced competitive advantage when your client asks – Are you Lean?
Ask how we can help your team enhance your competitive advantage through a successful Lean initiative.
Author – Charles Wilds is senior management consultant with over 30 years of experience in contracting, operations and strategic business development. He works with leadership and organizations to drive alignment to winning behaviors and performance for faster growth and greater profitability.