Wishing you a Lean New Year

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:"Times New Roman"; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} It is the custom at this time of year to exchange seasonal greetings, but at the beginning of 2009, the traditional ÔÇÿHappy New YearÔÇÖ sounds rather hollow.   With the credit crunch likely to get worse before any stimulus plan takes effect, with the auto industry hanging on to a government lifeline in turbulent seas, and daily news of bankruptcies, closures and lay-offs, itÔÇÖs difficult to wish anyone a Happy New Year with a straight faceÔÇöunless you believe in the lean philosophy.   Some of the lean leaders close to this magazine have been writing to me over the last few days to encourage me to show our readers the light they believe is at the end of the lean tunnel.   But Toyota has been the lean industry model for years; if the model is now losing money, for the first time in 70 years, how can lean save us?   Jim Womack, legendary lean guru from the Lean Enterprise Institute, points out that ToyotaÔÇÖs current difficulties are the result of decisions made in the 1990s to go full out for growth to gain the No 1 position in the industry, which led to unToyota-like spending and borrowing, making the company vulnerable to a steep drop in demand.   ToyotaÔÇÖs current experience strengthens, rather than weakens lean thinking, however. ÔÇ£Despite the collapse in demand in every major market, Toyota is not in the desperate straits of many of its rivals,ÔÇØ says Womack. ÔÇ£Indeed, if things somehow get so bad that only one car company is left operating, that company will be Toyota.   ÔÇ£In the mid-1990s it changed course to embrace the common view in business that growth of any sort is good and that being biggest is best,ÔÇØ he continues. ÔÇ£This is not the lean way and I predict a return to Toyota's traditional view of its purpose. I also predict that the current downturn will prove a blessing by giving Toyota time to replenish its stock of lean managers. Its breakneck growth seriously diluted its managerial experience level and was becoming a grave risk to its long-term success.   ÔÇ£But what about the rest of us?ÔÇØ he asks. ÔÇ£The simple fact is that this adversity will force all of us to confront difficult issues in our organizations and in our markets, issues that we would rather avoid and probably have long avoided. For those who reflect carefully, determine root causes, and take focused, creative actions, the future will be brighter.ÔÇØ   Anand Sharma of TBM, who writes our monthly Opinion column, sings from the same hymn sheet. ÔÇ£When many are thinking about lay-offs and how to survive should the world economy worsen, we need a real methodology for making real change. A lean philosophy is the best chance our new President will have to get the most from our national resources and help turn around the economy of this country.   ÔÇ£Likewise, lean is also the best antidote for companies and governments around the world to weather this global economic storm. In India there is a saying: ÔÇÿGold comes out brighter after the fireÔÇÖ. People, organizations, and governments who weather the firestorm by building on a lean foundation and living a lean philosophy will surely come out better in the end.ÔÇØ   A Happy, Lean New Year to you all.   Martin Ashcroft Editor   *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *