According to McKinsey Solutions, in 2014 the failure rate of Lean projects was 75%. Of those failures, 47% occurred due to management’s behavior not supporting change or assigning adequate resources. Another 39% is due to employee resistance to change…part of which can be linked to management’s behavior. According to Nigel Clements (advisor with UK-based non-profit Deming Forum), the rate is also 70% and the top reason is ‘management buy-in’.
Extrapolating the data, we can conclude that approximately 80% of the failures to launch a successful Lean Management initiative directly relate to senior management. Why?
There are several specific root causes, but they all come back to one issue: Senior management lacks the knowledge capital to be able to set up the project for success.
Read this article for more information and what Emercomm can do to help you avoid failure.
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