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How Learning Organizations are Achieving Superior Results 

Systems Thinking at the Root of Waste

The landscape of business has changed rapidly. To control their adjustment to the “new normal” leaders are looking for efficiency from every part of their organization. Achieving this efficiency requires alignment of every organizational component through Systems Thinking.

When Lean management practices used by the Toyota Motor Corporation were first introduced in the Western Hemisphere, many new adopters expected outcomes with efficiencies like those realized by Toyota. While experiencing some of the benefits of waste and cost reduction, business leaders have often been frustrated by the unfulfilled promises of Lean. A key component we sometimes find missing in organizational adoption of Lean techniques is the Management approach of Systems Thinking.

Systems Thinking

Systems Thinking involves the flow of information and materials across all organizational work centers and through internal and external Value Streams. A Value Stream is a type of system map that illustrates an end-to-end sequence of events that takes a product or service from inception to the point where the customer receives the intended value of that product or service. The interconnectedness of all parts is not a new concept to business professionals; however, the reason for optimizations on specific parts of the systems may be. In the Systems Thinking approach, continuous improvement requires that organizational leaders create a culture embedded with techniques for selecting a portion of the system for optimization at the right time. Creating a culture where Systems Thinking can thrive often requires a change in management philosophy.

Solutions

Strategy Capability Analysis

Involves analyzing organizational strategy and aligning it to tactical tasks. The CertainPoint approach integrates strategic goals with individual task assignments to maximize efficiency and reduce costs.