Lean for Banks

The Basics of Lean

“Lean” is shorthand for any aspect of the lean paradigm: culture, systems, operations, processes, thinking and philosophy. Lean, meaning “without fat,” incorporates elements of industrial quality improvement programs such as “concurrent engineering” and “Total Quality Management.”

Lean’s managerial goal is to increase client value, and its guiding mantra is “customer first.” Lean classifies customers as either “external” – those who purchase a company’s products or services – and “internal” – the corporate team members and co-workers who create those products and services. Lean encourages teamwork in a culture of respect and fair treatment. In fact, “the masters of lean view teamwork as the most important aspect of lean operations.”

Ideally, managers promote trust and commitment, so that employees can develop the confidence to solve problems proactively. Lean focuses on using teamwork to implement productivity improvements. It identifies and eliminates waste while increasing quality. Participating companies report greater efficiency, reduced costs and higher consumer satisfaction. Lean does not use severe cost cutting or massive layoffs that...