Is Lean management right for your team?

Waste is never a good thing — whether that’s resources, time, or money — and that’s exactly what Lean management is about: creating a culture that is as efficient as possible.

Toyota originally developed the Lean methodology in the ‘80s to minimize waste on its production line. Needless to say, it worked for them, and since then, a wide range of industries have adopted it, from marketing and manufacturing to design and management and beyond.

If you want to work more effectively with your team, then Lean could be your new favorite tool. Read on to find out exactly what this popular methodology involves!

What is Lean management?

Lean management is all about helping you do more with less by cutting down on waste — whether that’s effort, time, materials, or money. Not by taking shortcuts or lowering quality, but by making things more efficient so that every step counts.

As a process, it pushes teams to work smarter, not harder, by spotting and eliminating anything that doesn’t positively contribute to the overall goal. These might be superfluous steps in a process or tasks that don’t add value.

Where did Lean come from?

Originally, Lean came from the world of manufacturing, specifically Toyota. but now it’s used in lots of fields — like software, healthcare, government, and even creative work. Any time there are tasks and teams, Lean can help make things better.

What are the main principles of Lean?

Lean management is shaped around five core principles, as described by the Lean management Institute.

1. Identify your value. Always satisfy your customers’ needs by only providing services that add value. Any activity that doesn’t add value is considered waste.
2. Map the value stream. Analyze your workflow from start to finish, including all the activities of everyone on your team (and potentially beyond). Once you’ve done this, you’ll be able to see which activities add value and which don’t.
3. Create flow. Refine and streamline your workflow, highlighting things like bottlenecks or unnecessary approval stages that could slow things down. Remember: if it doesn’t add value (or causes problems), then get rid of it.

4. Establish pull. This is a way of working that requires people to ‘pull’ jobs to work on when there’s demand, and only when there’s demand.

To use a real-life example, say you’re working behind a bar. You’d pull a drink for someone when they step up and order one — you wouldn’t pour beers in advance when the bar is empty. It’s the same for Lean working.

5. Seek perfection. Lean isn’t something that has an endpoint; it’s about continuous improvement. Tasks and workforces change, which is why it’s important to revisit and refine the workflow. And even if nothing’s changed, assess anyway — there’s almost always room for improvement.

Why do businesses need Lean?

Lean principles are designed to continually improve productivity. It’s popular because, when done properly, it works. Here are some of the benefits:

• Less waste. Continually refining your workflow means you can iron out productivity-sapping issues and tasks that don’t add anything.
• More focus. By eliminating activities that don’t add value, your team can focus more on those that do.
• Better motivation. When employees can focus on meaningful and impactful work rather than valueless busy work, they have a greater sense of purpose.
• A smarter way of working. Using the pull system means the team will only work on tasks when there’s demand. They can spend any spare time on either preparation or training.
• More value for the customer. By cutting out tasks that don’t add value, you can dedicate more time to those that do. This gives you a higher-quality product.

Lean management methodologies you need to know

Over the years, a few methods have popped up to help teams apply Lean principles, each with its own tools and focus. Knowing what’s out there can help you pick the best approach.

We’ve already written at length about process improvement methodologies, so we’ll make this a whistle-stop tour.

Six Sigma

Six Sigma is all about using data to boost quality by pinpointing and solving issues that lead to defects. It relies on statistical tools and follows a clear step-by-step process known as DMAIC: Define, Measure, Analyze, Improve, and Control, to get really close to perfect results.

There’s also a belt certification system similar to martial arts to show skill level. Team members can earn titles like Yellow Belt, Green Belt, Black Belt, or Master Black Belt based on their training and skills.

Key advantages:

• Reduces process errors
• Enhances customer satisfaction
• Promotes data-backed decisions
• Drives continuous, measurable improvement.

2. 5S

5S is a foundational method for keeping workspaces safe and efficient. It includes five steps: Sort, Set in order, Shine, Standardize, and Sustain. These steps help improve how things flow and cut down on waste.

Key advantages:

• Improves efficiency and safety
• Reduces clutter and confusion
• Builds discipline and ownership.

3. Kaizen

Kaizen is all about making small changes to improve things bit by bit. It gets everyone in the organization involved in finding ways to do things better over time.

Key advantages:

• Engages all employees in improvement
• Builds a culture of adaptability and learning
• Achieves long-term gains with low-cost changes.

4. Kanban

Kanban is a simple way to manage tasks using cards that display how work is progressing. It keeps teams on track by encouraging them to finish what they’re working on before taking on new tasks.

Key advantages:

• Improves workflow visibility
• Reduces work overload
• Enhances task prioritization and delivery speed.

5. SMED (Single-Minute Exchange of Die)

SMED is all about reducing the time it takes to switch from one job to another. It breaks down the setup tasks into internal and external ones, making it easier to change from one process to the next without wasting time.

Key advantages:

• Reduces production downtime
• Increases flexibility for small batch production
• Improves responsiveness to market changes.

6. JIT (Just-In-Time)

Just-In-Time is a production approach where materials and products are made or delivered at exactly the right time, in the right quantity. This helps keep inventory costs (like storage) down and production running without holdups.

Key advantages:

• Cuts excess inventory
• Reduces waste
• Aligns production with real demand.

7. Value Stream Mapping (VSM)

VSM shows all the steps in a process from start to finish, letting you see how materials and information flow. This helps you find waste or bottlenecks, making it easier to deliver more value over time.

Key advantages:

• Clarifies process inefficiencies
• Encourages end-to-end thinking
• Provides a roadmap for improvement.

8. Poka-yoke (error proofing)

Poka-yoke involves designing systems or tools to catch mistakes before they happen. It’s a preventive approach to quality control.

Key advantages:

• Reduces defects and rework
• Improves product reliability
• Enhances worker confidence and quality.

9. Gemba (Gemba Walks)

Gemba means “the real place” in Japanese — where the work actually happens. A Gemba Walk is when leaders visit the shop floor or work area to see things for themselves and ask questions to get a better understanding of any issues.

Key advantages:

• Promotes direct observation and engagement
• Encourages frontline feedback
• Helps leaders make better-informed decisions.

10. Muda (Waste)

Muda refers to any activity or step that consumes resources but doesn’t add value from the customer’s point of view. The seven classic types include overproduction, waiting, transport, overprocessing, inventory, motion, and defects.

Key advantages:

• Targets non-value-adding activities
• Streamlines processes
• Supports cost and time savings.

11. Jidoka

Jidoka roughly translates as “automation with a human touch.” It’s about building quality into the process by automatically stopping work when something goes wrong, either through machines that detect issues and automatically shut down, or by empowering workers to halt production themselves.

The goal is to fix problems immediately, rather than letting defects continue down the line.

Key advantages:

• Prevents defects from progressing through the workflow
• Empowers workers to take ownership of quality
• Encourages fast problem-solving and continuous improvement.

How to build a Lean culture in your workplace as a manager

Building a Lean culture isn’t just saying ‘ta dah’ and hoping for the best. It’s about changing how your team thinks and works together on a deeper cultural level. This takes time and good leadership, as well as everyone’s commitment. Here’s how to kick things off.

1. Understand (and believe in) the ‘why’

Before anything else, it’s important that leadership fully understands Lean principles — and more importantly, believes in them. Without a clear purpose and commitment at the top, it’s hard to drive change.

Get clear on why Lean matters for your team or organization. Is it about reducing inefficiencies? Improving customer experience? Freeing up time for innovation? Know your ‘why’ and communicate it early and often.

2. Engage your team from the beginning

Lean only works when everyone’s on board. That means involving your team early and explaining how Lean will benefit them, not just the business.

Be honest about the changes coming, and create a space for questions and feedback. When people feel heard, they’re more likely to get involved and stay committed.

3. Map your current workflow

You can’t improve what you don’t understand. Start by mapping out your existing workflows from end to end.

Include every step and approval process — even the informal ones. Involve people from different roles so you don’t miss anything. This is your value stream map, and it’s what you’ll use to spot waste or delays in the process.

4. Identify what adds value — and what doesn’t

Once you’ve got your map, go through it with a fine-tooth comb. Which steps actually add value for your customer or end-user? Which ones are just there because “that’s how we’ve always done it”?

Lean is about cutting out anything that doesn’t serve a clear purpose, whether that’s duplicate work or unnecessary meetings.

5. Start small and experiment

Rather than overhauling everything at once, choose one area to trial Lean principles. This could be a specific project, process, or team.

Focus on improving flow, reducing waste, and testing new ways of working — such as a pull system or daily standups. Keep the scope manageable so you can learn as you go.

6. Encourage daily problem-solving

A true Lean culture empowers everyone to identify and fix problems, not just managers. Make it part of your routine to reflect on what’s working and what’s not.

Daily standups or regular retrospectives are a great way to spot roadblocks and share quick wins. Small, continuous improvements add up fast.

7. Lead by example

Leadership sets the tone for any cultural change. If you want people to take ownership and embrace Lean thinking, you need to model that behavior.

Be transparent about your own challenges, celebrate progress (even the small stuff), and be open to feedback. Culture shifts happen when people see leaders walking the talk.

8. Invest in training

Not everyone will know about Lean from the outset. Offer resources and coaching to help people build the skills they need, from value stream mapping to collaboration tips. If someone is struggling, give them extra help to adjust.

9. Celebrate wins and share stories

Change can be hard, so make a point of celebrating successes along the way. Whether it’s a faster process or a happier customer, show your team that their Lean efforts are making a difference.

Sharing real stories helps make Lean feel tangible and motivates people to keep going.

10. Commit to continuous improvement

A Lean culture isn’t something you set and forget. Keep checking in on your team, asking: What could be better? Build curiosity and experimentation into the process, and make it safe to fail. In fact, reframe ‘failure’ as a learning opportunity.

Common Lean management challenges (and how to overcome them)

As with all methodologies, there will be struggles and downsides. Here are the main things to look out for (with tips on how to avoid them):

Lack of time

To get started with Lean, you’ll want to do some planning first. Take a good look at how everyone currently works, and track things for a bit if you haven’t already.

It’s also helpful to chat with your team and leaders from other departments. Encouraging your team to meet often can make a difference, too. Many Lean teams do daily standups (that’s short meetings in Lean speak) to talk about what they’ve finished, what’s next on the list, and any issues that might pop up.

A lack of strategy

Some organizations get so focused on Lean tactics that they lose sight of the bigger picture.

Set regular strategy review sessions (monthly or quarterly) to realign your Lean efforts with broader business goals and ensure you’re not just optimizing for the sake of it. Another way to get around this is to create a project charter for each project, as well as an overall mission statement.

Not enough buy-in

Lean is considered a radical way of working that requires complete buy-in from teams. They’ll need to work independently without too much direction, which might not work if your team is inexperienced.

Implementing a new strategy can also cause stress, especially if it’s a particularly results-oriented methodology, such as Lean.

Brush up on your organizational communication skills so you can effectively tell everyone why they are shifting to this way of working. You may also need to invest in training to get less experienced (or resistant) workers up to speed.

Cutting things too fine

Lean follows a ‘pull’ style of working which means work is delivered as needed, and not preemptively. But if there’s a bottleneck or your resources are low (for example, someone’s off sick), then delays can start adding up quickly.

Having a contingency plan and buffer time in place can help provide leeway, while smart planning using project management software will help you track tasks as they happen, helping you plan ahead.

Create a culture of continuous improvement with project management software

Lean management isn’t just a method; it’s a way of thinking that encourages curiosity, teamwork, and always looking for ways to do things better. Change in culture can take a while, but using the right project management software can help make Lean a reality.

With Backlog, our own tool, you can see your workflow and keep track of progress in real time. This helps everyone stay flexible and ready for anything. When you combine Lean practices with the right tools, it really boosts productivity, morale, and most importantly, your profits. Ready to give it a try for free?

This post was originally published on February 14, 2020, and updated most recently on May 7, 2025.