chapter  3
16 Pages

Expand Lean Results with HR

ByCheryl M. Jekiel

The “cost-saving” view of lean focuses on how to lower costs, while the potential improvement value (PIV) view concentrates on how to increase business value. It provides a critical gauge with which to evaluate lean’s potential return on investment. The first PIV refers to all lean activities devoted to improving work processes, while at the same time building highly valuable skills. The focus of many lean initiatives is to offer better service, thus creating better experiences for customers. All the elements just reviewed allow Human Resources (HR) to provide indispensable value through the broad expansion of the role of lean, which leads to greater business success. The ability of companies to achieve the PIV in each of the areas hinges on HR’s vital role in leading the creation of lean cultures, talent management strategies, and leadership. It also involves HR’s full participation in the overall strategy for Lean.