Lean Readiness Index: Assessing Organization Preparedness to Implement Lean

Abstract

In this chapter, we present the case that the practices of organizational excellence broadly known as ‘lean management’ are established methodologies with a recognized ability to offer superior performance and competitive advantage for companies and other organizations. In contrast, we focus on the precursor stage, to understand how far and in what ways an organization can be said to be ready to implement lean management practices. In this way, we argue that the potential for or limits on organizational transformation may be better understood, thereby making the implementation of lean management practices more successful. The robustness of the lean readiness index was tested by conducting a pilot survey study of three manufacturing businesses in India. The relative maturity of the organization in terms of key variables, such as leadership, organizational culture, communication, involvement of employees and process management systems are shown to be key in determining how well lean management practices will be established.