Towards Improving Banking Services Quality - 6 - Introduction – Pillars and Foundational Principles of Lean Management

 Towards Improving Banking Services Quality

6.

Introduction – Pillars and Foundational Principles of Lean Management

 

This chapter provides a concise introduction to the two pillars and five foundational principles of Lean management. Lean management is an organizational culture rooted in a management philosophy, values, and methods aimed at contributing to the sustainable development of society and the earth through the manufacturing and provision of high-quality and innovative products and services. It results in significant improvements in production efficiency and product quality. Lean management is built upon two core pillars and five foundational principles.

 

Two Pillars of Lean Management:

 

·       Continuous Improvement: Continuous improvement, often referred to as Kaizen, involves making small, incremental changes to improve processes over time. For example, banks can enhance processing speed by identifying and eliminating redundant tasks, automating processes, and performing certain activities simultaneously.

 

·       Respect for People: This principle emphasizes the importance of valuing employees and fostering collaboration. Banks can implement strategies such as feedback loops (where a system's output is used as input to refine future processes), recognition programs, and career development opportunities. These initiatives ensure that employees feel valued and aligned with the institution's goals.

 

Five Foundational Principles of Lean Management:

 

·       Identifying Value: Understanding customer needs and defining what constitutes value is the first step in Lean. For banks, this might involve simplifying processes to enhance customer experiences.

 

·       Map the Value Stream: Value stream mapping is a tool used to visualize the flow of materials and information, helping to identify areas of waste and opportunities for improvement.

 

·       Create Flow: Standardizing workflows and minimizing bottlenecks are essential for achieving seamless and efficient processes.

 

·       Pull: A pull system ensures work is initiated based on actual demand rather than forecasts, which is particularly applicable in-service sectors, like banking.

 

·       Seek Perfection: The pursuit of perfection encourages continuous improvement and a relentless focus on delivering maximum customer value.

 

The five foundational principles provide a framework for building efficient and effective organizations. Lean enables management to uncover inefficiencies and deliver better value to customers. These principles promote improved process flow and foster a culture of continuous improvement. By adhering to all five principles, organizations can remain competitive, enhance customer satisfaction, reduce operational costs, and boost profitability.

 

Forthcoming chapters will delve deeper into the two pillars and five foundational principles.  

I welcome your comments, questions and suggestions.

Warm regards,

Keshav Ram Singhal