How SMEs can boost their agility and innovation with Lean strategies
Agility is not a goal in itself, but a result of continuous improvement. Innovation is not a random event, but a disciplined process. For small and medium-sized enterprises (SMEs) that face fierce competition and limited resources, these two principles are essential for survival and growth.
“The performance of SMEs today results from two necessities: developing new products and services (Innovation) to position themselves in a market and increasing the efficiency of processes (being agile) to be profitable.”
Laurent Muller
To achieve both Innovation and Agility, there are two key factors : putting the customer at the center of decisions, and constantly improving the innovation process. These are also the drivers of performance.
How can SMEs implement both an agile and an innovative approach ?
For an SME hit by a crisis that needs to differentiate or diversify, the management of the strategy can be inspired by a Lean philosophy, a source of efficiency, and an essential maturing of its innovation process. To survive crises, a company must develop its capacity to innovate.
Especially since the means of SMEs are limited compared to large companies. By adopting a Lean philosophy, which aims to eliminate waste and optimize value creation, Lean can help SMEs improve their overall performance and shorten the time to market for their innovative projects.
Agility is thus seen as the outcome of reducing waste in the sense of Lean management.
However, applying Lean principles is not easy for small structures. They often lack defined and followed processes, formal methods or work standards, and innovation processes. The success of each project depends on the individual expertise of the employees. The ideas are often imposed by the management alone.
A four steps method to help SMEs adopt a Lean approach to innovation
- Map the value streams (VSM) of the current processes, from the customer’s perspective.
- Identify and eliminate the sources of waste (Muda) that do not add value to the customer or the company.
- Define and implement new processes that are more efficient, standardized, and customer-oriented.
- Monitor and measure the results, and continuously look for improvement opportunities.
By following this method, SMEs can become more agile and innovative, and better prepared to face crises and challenges.
Agile Project Management for SMEs
Agile project management is not just a buzzword, but a proven way to deliver value to customers faster and better.
It involves co-creating project objectives with stakeholders, fostering team collaboration, experimenting with different solutions, and learning from failures.
These actions can help small and medium-sized enterprises (SMEs) adapt to changing market conditions and customer needs, and transform their culture and system.
Agile project management requires a “partnership” approach with customers, who are involved in the process from the start and provide feedback along the way. This helps SMEs align their strategies with customer expectations and preferences. It also requires a new way of managing skills and knowledge, which involves human resource management and leadership that support change and innovation.
However, agile project management is not just about using tools and techniques.
It also depends on the engagement and participation of employees, who are the main source of ideas and improvements. If employees do not feel involved in continuous improvement, they will not contribute to innovation.
Agility is the skill of being able to adjust and respond to changing situations and conditions, rather than being rigid and fixed. Agile organizations are those that embrace change as a source of learning and improvement, rather than fearing or resisting it. They see change as an opportunity to create value and innovate, rather than a threat to their stability and survival.
In a complex and fast-moving world, the challenge for leaders is to unleash talent and make the organization more creative, faster, more autonomous, and more sustainably integrated into its ecosystems.
“Agility is the ability to adapt and respond to change. Agile organizations view change as an opportunity, not a threat.”
Jim Highsmith
Happy CEO 