Happy CEO

Success factors and adjustments for SMEs

In crafting this website, we aimed to share our personal experiences and those of fellow industrialists in crisis management through Lean tools within the realm of financial control.

Our intention is to humbly propose avenues for fine-tuning and enhancing our own methodologies.

1. The role of Leadership and Culture
   We’ve found, after empirical research, that the personalities of leaders, the unique characteristics of their businesses, the existing cultures and values, and the diversity of industries all play a pivotal role in implementing and succeeding with a strategy rooted in Lean and Financial Control.
   
   
2. Challenges faced by SMEs
   Many of the surveyed companies are small to medium-sized enterprises, some of which are subcontractors with strong economic ties to significant, long-standing clients.
   These companies share common obstacles that hinder the maturation of Lean and Financial Control.
   
   
3. Simplifying Lean for Small Businesses
   It appears that partially implementing Lean tools here and there in different departments or training select individuals is at odds with the necessity of thinking about the organization as a whole, the complete system that continuous improvement seeks to rectify.
   Breaking down silos, promoting cross-functional thinking, and fostering versatility are central challenges for leaders pursuing agility.
   
   
4. Lean as a Philosophy
   Considering the limited level of Lean and Financial Control training and comprehension among leaders and operational managers in French SMEs, it seems pertinent to propose a simplified, progressive approach to Lean, supported by Financial Control matrices, for small businesses.
   
   
5. The Japanese influence on Lean
   We start with the assumption that Lean is primarily a philosophy and even a way of life in its country of origin, Japan. Pushing tools without providing educational support that offers meaning and a long-term vision is futile.
   
   
6. The Role of “Dojos” in Lean Training
   In Asian languages, there’s a word for “The Way,” like “Do” in Japanese, or “Tao” in Chinese. The Great Path (Confucius) rests on spiritual, material, and aesthetic values. The practice of any art or craft follows a “way” with its unique philosophy, sometimes spanning centuries.
   
   
7. Cultural differences and their impact
   Toyota’s “Dojos” are rooted in the ancient martial culture of the Samurai, known as the Bushi-do (Way of the Warrior), which later branched into various martial arts, such as Ken-do, Aïki-Do, Ju-Do, Karate-Do.
   The use of Dojos, places where one seeks the way, reflects the Japanese commitment to a method that accompanies the individual on their personal journey and introspection.
   
   
8. The perception of time and its impact
   Furthermore, the concept of time and an individual’s perception of time within their culture are essential factors. Westerners typically aim for quick results, often forcing the technical implementation of Lean tools.
   This approach does not foster positive results. In contrast, Asian cultures have a different perception of time, emphasizing the long term and collective over the individual. Understanding these cultural differences is crucial for embracing a systemic continuous improvement approach.
   
   
9. The key to Lean Success
   However, it’s essential to avoid comparing different cultures without understanding their history. The Japanese have exceedingly high expectations of themselves, and this perfectionism has a downside, with many suicides resulting from the pursuit of excellence and honor, leading to the highest suicide rate in the world.
   People are a central resource in Lean systems, and that they need to be developed and empowered in order for Lean to be successful.
   In a Lean philosophy, we believe that individuals must surrender to something greater than their ego, the collective. Herein lies the key to Lean, leadership, and collective success.

During our management journey, we’ve explored how Lean and Financial Control can align with small and medium-sized enterprises (SMEs) using a wisdom-based approach. We’ve found that Lean goes beyond tools, embodying a holistic, continuous philosophy. Leadership and culture greatly impact Lean, and SMEs face unique challenges in embracing it.

Drawing inspiration from Japan and the concept of “dojo,” we propose a simplified path for SMEs. Understanding cultural differences and prioritizing collective effort are essential. Individuals are key in Lean systems and must be empowered for success.

Implementing Lean in SMEs is complex and requires cultural empathy. Each SME is unique, so a one-size-fits-all solution doesn’t apply. SMEs should embrace a learning mindset, adapt to their needs, seek guidance, and foster empathy.

By infusing cultural awareness and empathy, SMEs can overcome Lean challenges, leading to improved performance and efficiency. This text offers valuable insights and guidance to SMEs seeking growth through Lean and Financial Control, rooted in wisdom.

In summary, Lean for SMEs: a simplified and progressive approach based on the japanese philosophy

• The Role of Leadership and Culture
  • Personalities of leaders, business characteristics, cultures, and values influence success with Lean and Financial Control.
• Challenges Faced by SMEs
  • Small to medium-sized enterprises, some with strong client ties, encounter common obstacles in Lean adoption.
• Simplifying Lean for Small Businesses
  • Partial Lean implementation at odds with holistic organization thinking.
  • Key challenges for agile leaders: breaking silos, promoting cross-functional thinking, fostering versatility.
• Lean as a Philosophy
  • Suggests a simplified, progressive Lean approach for SMEs with limited training and comprehension.
• The Japanese Influence on Lean
  • Considers Lean as a Japanese way of life, emphasizing meaning and long-term vision over tools.
• The Role of “Dojos” in Lean Training
  • Refers to Japanese commitment to a method based on cultural values and individual growth.
• Cultural Differences and Their Impact
  • Discusses the influence of culture on the perception of time.
  • Highlights Western focus on quick results and Asian emphasis on the long term and the collective.
• The Key to Lean Success
  • Caution against comparing cultures without understanding their history.
  • Emphasizes that individuals must embrace the collective for Lean success.
  • People are a central resource in Lean systems, and that they need to be developed and empowered for Lean to be successful.
• Conclusion
  • Lean has a holistic nature beyond tools.
  • Leadership and culture play an influential role.
  • We offer a simplified approach rooted in Japanese wisdom.
  • It is important to understand cultural differences and empower individuals in Lean systems.

“Lean is similar to a socio-technical system in which people play a central role and are a resource that needs development”

Jude Dibia