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The paper tests if and to what extent lean management system adoption generates abnormal profitability, and how it accrues over time. Configurational approaches to lean management systems and “S-curve” effects in lean implementation are used to ground the paper's hypotheses and interpret its findings.

Using the emerging view of lean as enterprise-wide management systems, this quasi-experimental study uses a difference-in-differences approach to estimate the abnormal profitability (ROIC) attributable to lean management system adoption. The paper leverages a unique data set of lean adopters nested in a panel data set (19 years) of 2,088 industrial firms matched by industry and firm size. It applies a variety of regression methods (two-way fixed effect panel estimator, propensity score matching, instrumental variable two-stage-least squares) to estimate the size of the abnormal profitability attributable to lean management systems, addressing endogeneity issues related to non-random sampling, omitted variable bias and reverse causation. It also analyzes the cross-firm variability of such abnormal profitability and how it accrues over time.

For the average non-adopter in the sample (44.3 million euro revenues), lean adoption generates abnormal ROIC ranging from 1.4% to 3.9%. These results come into effect approximately three years after starting lean adoption and peak after eight years. While the average abnormal profitability attributable to lean adoption is sizable, it varies significantly across firms and over time. This significant variation is compatible with firms' diverse ability to understand the complex inner workings of lean systems, and to design and implement them so that they improve profitability.

The conceptualization of lean as enterprise-wide management system can be further refined to more effectively categorize the components of lean systems and investigate the nature of their relationships. Lean system adoption measurement can be fine-tuned to better capture cross-firm and longitudinal heterogeneity. Future work can explore other dependent variables of interest to different stakeholders including shareholders' value, employment and environmental and social sustainability.

The financial benefits of adopting lean can be reaped to the extent to which managers embrace lean as a philosophy and implement it pervasively in the organization. A firm can use the study's estimates as a basis for making calculations about the returns of investment in lean adoption. The paper also shows that “getting the lean system right” makes a significant difference in terms of abnormal profitability, which is twice as large for the best lean adopters..

Compared with the promises of many lean proponents and supporters, the paper provides a more realistic view of what to expect from lean adoption in terms of profitability. Adopting lean as a comprehensive, enterprise-wide management system is not a universal panacea, but a complex endeavor, characterized by multiple complex decisions that require considerable capabilities, coordinated efforts and consistency of action.

Differently from extant research, this study does not study the correlation between the adoption of lean operation practices and financial performance but focuses on the abnormal profitability generated by the adoption of lean as a pervasive, enterprise-wide management system. Its research design allows to identify the differential profitability attributable to lean adoption and documents that it accrues non-linearly.

To examine why most Lean transformations achieve only modest favorable results, despite years of effort.

Comparative/evaluative discussion of efforts made by senior managers to implement the Lean management system, with commentary on a published example.

Presents common obstacles and identifies common implementation errors that must be avoided in order to realize the full benefits of the Lean management system.

Illustrates the ease by which Lean transformation efforts can lead to less desirable outcomes when senior managers fail to fully grasp the implicit and explicit aspects of both task and behavioral elements of a new management system.

Provides specific suggestions that will enable senior managers and organizations to achieve improved outcomes.

Identifies numerous common errors made by senior managers, the rationale for why the errors have occurred, and suggests improvements for implementing the Lean management system.

This study investigates the relationship between lean manufacturing practices, management accounting and performance measurement (MAC & PM) practices, organizational strategy, structure, and culture, and facility performance. We extended past research by examining the relationships between lean manufacturing, MAC & PM practices and performance in a broader organizational context. Our study was performed using survey data provided by managers and executives at 368 facilities that had contacted the Shingo Institute for information or that had entered a Shingo Prize competition. Consistent with past research we found a significant positive association between lean manufacturing practices and lean MAC & PM practices. We found that greater employee empowerment, use of process performance measures, and use of lean accounting practices were driven primarily by lean strategy and secondarily by the extent of lean manufacturing practices. We also found that changes in organization structure to support lean are driven primarily by lean strategy and secondarily by lean manufacturing practices. Change toward lean culture, on the other hand, is driven by the extent of lean manufacturing practices. Further, we found that emphasizing process performance measures does not reduce emphasis on results performance measures and emphasizing results performance measures leads to improved financial performance. Process and results measures are being used in tandem and value stream costing has not replaced traditional accounting. The results of our study provide important insights for managers of companies engaged in lean transformation and for academics who teach or research lean accounting.

This paper deals with the subject of “Lean Normalization.” The purpose of this paper is to propose a comprehensive methodology which combines the benefits of both International Organization for Standardization (ISO) standards and Lean Management. The application of this methodology leads manufacturing or service companies to certification without creating more documentation. It guarantees agility and flexibility in the day-to-day management of the company, and induces lower costs and reduced times. This methodology provides a new way of tackling the implementation of ISO standards in a company.

This methodology is based on the synergistic combination of both ISO standards (Quality Management System) and the key concepts of Lean Management. After a short presentation of ISO standards and Lean Management, the possibility of implementing a synergy between these two different approaches will be discussed. At this point, ISO 9001 standards will be focused on. The proposed methodology will be introduced step by step. Each step of the model will be formalized using the Structured Analysis and Design Technique graphic representation tool. Moreover, each step is associated with a key concept of Lean Management. In order to illustrate the proposed method, an example of implementation will also be presented.

To show the feasibility of this methodology, this paper finishes with a summary of the results achieved in a company and draws some interesting conclusions. Companies have the possibility of achieving certification in combination with a Lean Quality Management System (LQMS): a one-page quality manual, only ten records, no major non-conformities and no customer complaints over a two-year period.

The methodology may have to be adapted to better suit the needs of companies seeking to implement the latest version of the ISO 9001 standards.

This paper presents the deployment of ISO 9001 standards whilst simultaneously respecting key Lean Management concepts. The practical results for enterprises are the implementation of an LQMS leading to a certification.

This paper presents a new method combining both ISO standards and Lean Management concepts to achieve certification with an LQMS.

Due to its simplicity and the relevance of its steps, the proposed methodology can be applied to companies with a guaranteed success of certification.

The purpose of this paper is to identify and empirically validate a repertoire of management behaviors associated with the adoption of lean systems, showing how a subset of such behaviors differentiates more advanced lean systems in a specific setting.

The study applies regression analysis and non-parametric hypothesis testing to an original data set coming from field research of 26 cases of adoption of lean operations practices.

The study: identifies in the lean literature a repertoire of management behaviors that support lean implementations and complement the adoption of lean practices; provides a way to operationalize them; validates this repertoire of behaviors; and shows that a subset of these behaviors is associated with more advanced lean implementations, suggesting the necessity to adopt a situational approach to lean leadership.

The findings have boundary conditions, defined by the national, industrial, and size context in which the study was conducted.

The study provides practical guidance for lean system implementation suggesting a repertoire of management behaviors within which firms can identify and validate specific, appropriate subsets of behaviors aligned with the company strategy, culture, size, environment, bundle of lean operation practices adopted, and maturity stage of lean adoption.

This is the first study to provide quantitative, non-anecdotal evidence of the relationship between specific management behaviors and the successful implementation of lean operations practices. It offers a novel method to operationalize and measure lean management behaviors.

The purpose of this paper is to provide a historical account of the significant role that Connecticut businesses and business leaders had in the spread of Lean management throughout the USA. The paper aims to describe what happens when managers do not understand and apply an important principle of Lean management.

Survey of published and unpublished records, as well as personal communications with key figures.

Establishes the role and importance of Connecticut businesses and business leaders in the discovery and dissemination of Lean management in America since 1979, external to Toyota and its affiliated suppliers.

The accuracy of some past events necessarily relies on the recollection of key figures that were obtained by personal communications.

Describes how an important principle, “respect for people,” was not understood by most management practitioners, thus hindering efforts to correctly practice Lean management and improve business performance.

The paper provides a historical account of Lean management in America, focusing on activities that occurred in the State of Connecticut post‐1979. Description and relevance of a key area of misunderstanding among practitioners of the Lean management system.

The purpose of this paper is to develop a distribution management system that determines the path toward lean distribution through teamwork. This system introduces a set of lean distribution initiatives regarding the structural and strategic facets of organizations.

Through studying the case, which is one of the largest distribution companies in the Middle East, the deployment process of the developed system is examined through chartering focus, deployment and operational teams. These teams held several rounds of panel discussions to formulate the strategic, tactical and technical plans required for making distribution operations lean.

It is found that the strategic focus of the case should not only be restricted to distribution initiatives but also the company can achieve a suitable competitive position by focusing on leadership and integral architecture of information, distribution and transportation channels. The first semi-year cycle of implementing the lean distribution system in the case targeted a 2.5% reduction in the ratio of distribution cost to sales by planning for the cross-docking adoption. It also aimed at a 10% increase in the market share for the prioritized market by a 20% reduction in lost sales owing to improper implementation of the processes.

The developed lean distribution management system is novel in the way it includes the strategy, structure and capabilities of an organization. Deploying this system causes a meaningful connection between lean distribution principles and operational initiatives.

This paper aims to assess the impact of the leadership traits of chief executive officers (CEOs) on hospital performance in the USA. The effectiveness and efficiency of the CEO is of critical importance to the performance of any organization, including hospitals. Management systems and manager behaviours (traits) are of crucial importance to any organization because of their connection with organizational performance. To identify key factors associated with the quality of care delivered by hospitals, the authors gathered perceptions of manager traits from chief executive officers (CEOs) and followers in three groups of US hospitals delivering different levels of quality of care performance.

Three high- and three low-performing hospitals were selected from the top and bottom 20th percentiles, respectively, using a national hospital ranking system based on standard quality of care performance measures. Three lean hospitals delivering intermediate performance were also selected. A survey was used to gather perceptions of manager traits (providing a modern or lean management system inclination) from CEOs and their followers in the three groups, which were compared.

Four traits were found to be significantly different (alpha < 0.05) between lean (intermediate-) and low-performing hospitals. The different perceptions between these two hospital groups were all held by followers in the low-performing hospitals and not the CEOs, and all had a modern management inclination. No differences were found between lean (intermediate-) and high-performing hospitals, or between high- and low-performing hospitals.

These findings support a need for hospital managers to acquire appropriate traits to achieve lean transformation, support a benefit of measuring manager traits to assess progress towards lean transformation and lend weight to improved quality of care that can be delivered by hospitals adopting a lean system of management.

The aims of the implementation of lean management in health care are to improve quality of care, to eliminate waste and to increase efficiency. The purpose of this study is to contribute to the advancement of knowledge by investigating which main socio-technical factors are considered to be effective for the implementation and management of lean initiatives.

A systematic review of literature reviews on lean management in health care was conducted. The components of the socio-technical system are identified by moving from the socio-technical drivers that support organization-wide quality improvement practices and the lean implementation process in health care. The impacts of lean management are classified using the internal processes, patient, learning and financial dimensions.

The 28 reviews retrieved confirm the current and increasing interest in lean management. While more than 60% of them call for a system-wide approach, system-wide implementations have rarely been observed, and, instead, adoption in isolated units or departments, or the use of single techniques and tools, prevails. The most commonly investigated socio-technical components are organizational structure, techniques and tools and organizational culture and strategic management. Significant impacts are reported for all the four dimensions. Nonetheless, the review reveals that there is still a lack of evidence on the sustainability of lean results and a need for a standardized impact measurement system.

This work stands out as the first review of reviews of how the socio-technical components of the lean management approach obtain positive impacts within the patient, internal processes, learning and financial dimensions.

The purpose of this paper is to explain why most senior managers have great difficulty comprehending and correctly practising the Lean management system, thereby handicapping their ability to lead enterprise‐wide Lean transformations; to describe the depth and richness of relationships between the Lean management system and music; to help improve practitioners’ understanding of Lean management and how to learn it; and to help senior managers recognize the need to personally apply Lean principles and practices daily to become capable Lean leaders.

The paper uses a qualitative examination of various characteristics of the Lean management system and music, based in part on the authors’ experience implementing Lean in manufacturing and service businesses, and also in learning to play music over a nine‐year period.

The Lean management system and music share numerous similarities, including the difficulty most people encounter learning each discipline. The paper highlights the importance of daily practice by senior managers to learn and understand Lean management in order to capably lead enterprise‐wide Lean transformations, and to recognize and correct problems in Lean thinking and practice among themselves and others.

Elucidation of the deep similarities between Lean and music does not answer the fundamental question of how to increase the number of senior managers who are interested in becoming capable Lean leaders.

The paper provides an answer to the question of why it is so difficult for senior managers, and others, to correctly understand and practise the Lean management system. It clarifies the deep level of personal understanding, leadership involvement, and daily routines required to have greater success with Lean management.

Management practitioners who improve their understanding of Lean leadership will avoid common errors that undermine leadership credibility and morale among followers, and which impair the achievement of successful Lean transformations.

The paper presents a novel approach to understanding the Lean management system by using music as the framework. It shows how effective Lean leadership is more the result of daily practice than it is of the personal attributes normally associated with capable leadership. The deep similarities between Lean management and music have not been previously described in the literature.