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How lean IT impacts business outcomes

Sharon Florentine | Dec. 8, 2016
New research proves just how big an impact a Lean methodology can have an enterprise’s bottom-line.

Foundational change

It also involves changing things at the HR level, and even extends to areas like compensation and hiring practices, he says.

"If you're moving towards a Lean organization that's based on developing and maintaining stable teams of people who build trust, who work together from project to project. That requires changing your org chart. Then, you have to think about removing individual goals and replacing those with team performance goals, which changes compensation as well as what kinds of behavioral and skill competencies you're looking for when hiring - everything has to change," Terry says.

The common thread that's driving all this change is adapatability, says Dave West, product owner at Scrum.org. Organizations must become more nimble, agile and adaptable if they're to remain competitive in ever-changing market conditions and fluctuating customer needs and demands, he says.

"Ultimately, the intention of any movements like Lean, agile and scrum is to enable more responsive, flatter organizations that have a better ability to compete in a complex and dynamic market. We're all producing products and services into something of an unknown; you take a product to market, but it turns out a different demographic loves it, or it's used in a different way. Then, you have to come back, take that data and rework everything from marketing, sales, distribution," West says.

But while such a huge organizational change might seem daunting, the benefits of making the shift to a more Lean organization are well worth it, Terry says. From better management of process complexity to increased team morale, it's evident that the benefits of Lean go far beyond the work itself. Lean helps teams lift the burdens of inefficiency, empowering them to do their best work, according to the research.

 

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