11 Oct 2022

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The Link between Leadership Characteristics and Lean Leaders Approach

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Academic level: Ph.D.

Paper type: Research Paper

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For any organization, leadership is an integral aspect that influences daily operations and the achievement of core objectives. Several pieces of research have been conducted on different forms of governance styles and their associations with the success of organizations (Agodu, 2019; Deshwal & Ali, 2020). According to Deshwal and Ali (2020), the level of efficacy of a leadership style influences the success of the organization. Effective leadership, therefore, will lay a foundation for success, while ineffective leadership is a recipe for organization failure. Agodu (2019) established that leadership styles, when they are implemented appropriately, can transform how organizational activities are organized. Although in this study, the researcher focused on transactional and transformation styles of leadership, it is evident that the choice of a leadership style influences the functioning of an organization. Hussain and Hassan (2016) identified four types of leadership styles that can be implemented in an organization. However, the focus of their study was leadership styles that are representative instead of valued based. 

The lean approach to leadership is informed by the need to optimize the creation of value for consumers. Maximizing value can be achieved through efficient processes, reduction of waste, and continuous improvement of production processes (Tiamaz & Souissi, 2019). The lean leadership approach is based on five core principles that are critical for value maximization. They include value definition, identification, and mapping of the value system, waste reduction, pull flow strategy, and striving for perfection (Tiamaz & Souissi, 2019). A lean leadership model provides managers with a basis for adjusting organizational behavior. Thus, a lean leader is critical in the achievement of the desired outcomes on employees and the establishment (Aij & Teunissen, 2017). Despite there being many models and strategies for implementing the lean leadership approach, there inherent challenges to achieve this function. The goal of this literature review is to find the different methods and models that have been proposed for the implementation of a lean leadership style. 

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Lean Leadership 

Lean leadership is a management philosophy that aims at enhancing processes and eliminating wastages to add value for clients (Aij & Rapsaniotis, 2017 ). Lean leadership is informed by the need for a complete change in management approach and organizational culture. The style requires leaders to cultivate new skills and attitudes, thus setting grounds for the adoption of new behaviors. For lean leadership to be effective, it is essential to align the philosophy and tools to the firm's strategic goals. As such, the philosophy must be reflected in the vision and values of the establishment (Aij & Rapsaniotis, 2017 ). Seidel et al. (2019) established that three constructs are critical in understanding the lean leadership model. They include personal attributes of a leader, influence process, and context of implementation. The study found out that 52% of effective leaders from non-lean settings can adapt to implement a lean leadership approach positively. The researchers further found that lean leaders have three crucial attributes that are not evident in other theories. A lean leader is inclined towards self-development, problem-solving, and risk management. Seidel et al. (2017), however, developed a sixteen list model that defines a lean leadership style. The rationale behind the model is supported by the positive correlation between lean leadership and operational performance based on the sixteen factors. The results thus offer encouragement for institutions and managers when deciding on investing in developing lean leadership competencies. 

The Lean Philosophy and Waste Reduction 

A lean style of management has been found to be effective in resource management to minimize waste. Holweg and Maylor (2018), used lean thinking to frame a model for predicting and preventing inadequacies in project management. One of the critical problems that the authors envisioned is resource management to avoid wastage. The study identified three distinctive wastes in major projects using lean methodology. From this knowledge, the researchers had a foundation to develop five principles that could help in improving the delivery of major projects. Holweg and Maylor (2018) thus effectively contributes to the integrative framework based on the lean philosophy. First, lean leadership helps recognize the value and purpose at the macro level of an organization. Second, the philosophy acts as an integrator of best practices both at meso-level and micro-level. Assen (2018) draws a connection between lean leadership and waste management by providing a basis to buffer for changes in client demand, value streams, and production time. The author, therefore, provides a foundation for defining waste management from the perspective of lean management. Assen (2018) proposes that senior leadership must be proactive in implementing lean initiatives by leveraging lean tools and strategies, which will help in improving processes and activities. Top management must, therefore, create an enabling environment that is inclusive and characterized by communication (Shortell et al., 2018). The research recommends that managers and employees be involved at all levels, which sets the environment for people-oriented leadership. Continuous enhancement, which is a factor of proper resource management, is positively connected to lean leadership and the extent of process improvement (Assen, 2018). The leadership of an organization has the responsibility for actively facilitating the integration of lean strategies in a firm’s operational structure. A key benefit that is expected from this finding is the proper resource management and, thus, continuous improvement of process and outcomes. 

Lean philosophy is the backbone concept for lean manufacturing, which is a common principle for the reduction of wastages and increase efficiency in an industry (Mahendran et al., 2018). When the lean philosophy was tested on motor vehicle manufacturing industries, it was reported that resources were better managed. For example, overall, non-value time was reduced from794 minutes to 566 (28.71 percent reduction) minutes while the value-added time decreased by 446 seconds (a 27.84 percent decrease). Differently, the total stock volume reduced by 348 units. As a consequence, the value was added by 0.04 percent. Human resources were reduced by 50 percent, with the overall productivity improving as a result. Last, the idle time reduced by 5 hours, which is a 20 percent decrease. It is thus evident that implementing a lean philosophy to organizational functions such as leadership will trigger an improvement in overall efficiency. Varma and Singh (2018) found out that when the lean leadership strategy is implemented in cement industries, there were positive results. The strategy was directly associated with a reduction of losses in the transportation system, over-processing, and an improvement in overall efficiency. Also, the authors also ascertained that human resources though negative psychology, are also reduced. The philosophy of lean leadership in wastage reduction was also studied in a hospital setup. Lin et al. (2018) noted that lean techniques led to the reduction of waste in the use of intravenous drugs (IV). Resultantly, hospitals were able to save on their financial resources associated with the purchase of IV. 

Lean Philosophy and Efficiency 

Lean leadership is the trigger for improved production and efficiency in the production process. In the study to develop a predict and prevent strategy, Holweg and Maylor (2018), efficiency was a key principle that could influence the waste reduction objective. Some of the factors that contribute to resource wastage include poor coordination among key players and functions and incongruity between processes, which result in operational inefficiencies. Lean leadership strategies, when applied to product development, lays the ground for enhanced efficiency. Laureani and Antony (2019), use the lean leadership philosophy to augment the usefulness of Six Sigma methodologies. In this study, it was ascertained that lean leadership, when combined with the Six Sigma model, is critical to sustaining improvement. Second, when the two approaches are used, they result in improved leadership. Thus, from this study, it is worth recognizing the high value injected by the lean leadership philosophy in the Six Sigma methodology. The concept of lean production, which was adopted by Toyota, helps the leadership of an organization to conceptualize and actualize methodologies to achieve production efficiency. According to Chiarini et al. (2018), the implementation of the lean-Toyota Production System (TPS) across the western world has had positive outcomes. Some of these efficiency-oriented outcomes are inventory and lead time reduction, which results in customer satisfaction. Chiarini et al. (2018) opine that in implementing the lean based TPS system, the leadership of an organization does not have to adopt other cultures fully. The most apposite action is for the entire institution to change their perspective on how they conduct the company's operations. The authors propose that the leadership must acquaint themselves with the principles behind the philosophy and align operations inherent to the firm to the doctrines. The rationale behind this proposition is that the lean-TPS was conceived with the Japanese culture, which was a basis of failure in other countries (Chiarini et al., 2018). Therefore if an organization needs to implement lean leadership in its management functionalities, it should consider the prevailing circumstances in the business environment. Chiarini et al. (2018) recommend that the leadership of an institution needs to adopt the right frame of mind when implementing the lean philosophy. From their study, the authors recommend that changing the management style is easier than changing organizational culture. 

Lean Philosophy and Employee Performance 

Lean leadership, when based on collaboration, plays a critical role in sustaining and enhancing employee performance (Alefari et al., (2017). Adopting the lean philosophy in a manufacturing setup involves shifting from the old way of thinking to a lean thinking model. Such a shift is influenced by several factors, such as company culture, inclusivity, and business landscape, among others. Alefari et al. note the significance of engaging the employees in implementing lean methodologies in the functioning of an organization. Employees are specifically important in efforts such as continuous improvement initiatives. Leaders should demonstrate task-oriented behaviors and invests in endeavors that strengthen internal relationships (Alefari et al., 2017; Tortorella et al., 2019). According to Tortorella et al. (2019), lean leadership and its associative aspects are not only a reserve of manufacturing industries, but they can be used in other sectors. The most significant requirement is, however, a need to develop and maintain task-oriented behaviors and transfer the same to the employees. Chiarini et al. (2018) and Tortorella et al. (2019) differ in the focus period. Chiarini et al. focus on the long term, while the latter study was based on the short term. The two studies, however, agree that collaboration between the management and human resources is crucial. As Alefari et al. (2017) note, the involvement of workers in lean management conceptualized around task-oriented activities leads to the improvement of employee performance. Hence for the lean leadership philosophy to be effective, the institution as a whole needs to be oriented to the current circumstances. For example, Chiarini et al. (2018) write that the company must align its operations to the requirement of task-oriented operations and clients' needs. Consequently, there arises the need to work as a team among all stakeholders in an organization. 

Lean philosophy is geared at enhancing clients’ value by eliminating any processes that do not add value to the core functioning of an establishment (Dun et al., 2017). Dun et al. (2017) provided a collection of values and behaviors that lean managers should have to be effective. Five values were especially considered key for lean managers. They include trustworthiness, participation and collaboration, openness, accountability, and continuous improvement. Departing from Tortorella et al. (2019) idea of task-oriented leadership in lean management, Dun et al. (2017) proposed that the management of an organization should assume relation oriented behaviors towards their employees. The two approaches agree that employees should be continuously engaged with the aim of seeking their views (Dun et al., 2017; Tortorella et al., 2019). Employees autonomous is another aspect that lean management should consider. Dun et al. (2017) recommend that lean managers should allow workers to defend their positions. Although the key principle is to help an organization to minimize waste, thus giving value to clients, it essential for the managers to understand the actions of an employee. In their study, Dun et al. (2017), however, conclude that the values and behaviors of a lean manager must align with the expectations of the organization. Positivity and emotional intelligence are, therefore, key to achieving this since it will allow the lean managers to balance between their interests and those of the organization. As such, the study underscores the importance of relation-oriented behaviors in the organization. 

Competencies that Augment Lean Leadership 

For a company to implement lean leadership and other associated aspects, it must consider a set of competencies, practices, and behaviors (Assen, 2018). The author notes that the behavior of lean managers is paradoxical in nature. This is because it integrates elements such as reliance on facts and their analysis and social-related aspects like empowerment and cooperation. Lean leadership requires that the entire organization develop a working and healthy relationship that will promote teamwork (Assen, 2018; Dun et al., 2017). Empowerment involves the management in charge of lean methodologies to recognize the needs of the workers while collaboration brings in the relationship factor. Assen (2018) details three behaviors that a lean leader must exhibit which sponsorship, discernible commitment, and active involvement. The study thus shows that senior management must create an enabling environment for lean initiatives. As such, managers must enthusiastically promote and stimulate the implementation of lean methodologies and tools ( Pearce et al. 2018) . Moreover, the entire organization must be brought on board by explaining about the expectations and consequences of using lean methodologies. Assen (2018), thus, acknowledges the need for the supervisory level manages to assume people-oriented behaviors that will inspire involvement and teamwork among the employees. Consequently, this will promote accountability by exhibiting trust in those in senior management. 

Toledo et al. (2019) defined a consolidated model that can be used to support the implementation of lean leadership. It is possible to diagnose the problems associated with leadership when establishing the basis for lean leadership in an organization using the model. A key area that the research focused on was worker self-development. The study established that there is a need to restructure leadership practices to promote employees’ self-development. Coaching employees is thus an essential element that requires the management to think about both task-and relation-oriented approaches (Toledo et al., 2019; Tortorella et al., 2019). Mobilizing both the workers and the leadership towards the regularization and stabilization of the processes will allow an organization to reap maximum benefits from the lean philosophy. Last, Toledo et al. (2019) state that an establishment's goals must be aligned to the vision since such an endeavor will be key in process stabilization and the achievement of the strategic objectives. 

Conclusion 

Several studies have been done on the subject of lean philosophy and related aspects such as lean manufacturing and lean leadership. Deshwal and Ali (2020) acknowledge that the system of leadership that an organization assumes affects its success. From the reviewed literature, it was ascertained that incorporating lean leadership to the functioning of an organization is has beneficial consequences to the institution. Lean leadership will essentially lead to efficient processes, reduction of waste, and laying the foundation for continuous improvement in the operations of a company. The studies conducted thus far show that there is a connection between lean methodology and leadership. Also, the studies show that a lean leadership approach can enhance success for workers and a company at large. Implementing the lean methodology to an organization's process will adjust its culture and thus lay a foundation for success. Lean methodology, when applied to leadership, will help in improving processes, eliminating wastages, and improving a business's overall efficiency. However, lean leadership is linked to certain behaviors that influence how the rest of the workforce embraces the management style. 

The three above aspects define the link between lean methodology and leadership. Nevertheless, different methodologies have been designed that show the different principles of lean methodology. From the lean approach, a leader can be able to influence waste reduction, efficient processes, and continuous improvement. Recognizing the value, consideration for client needs, and factoring production time are some of the aspects of waste reduction that lean leadership can achieve (Assen, 2018; Holweg & Maylor, 2018). From proper resource management, the lean methodology sets the ground for efficiency in the organization. Coordination in each realm of an establishment results in inefficient operations, and this is a hallmark for a lean leadership framework. Among the aspects that incorporating lean methodology in leadership can help achieve are inventory maximization and lead time reduction. Efficiency is closely tied with employee performance since, for the former to happen, the leadership must ensure that workers' performance is optimum. Lean leadership will ensure that client's value is prioritized, thus triggering the need for employees to perform. Last, several behaviors and competencies are associated with lean leadership. These aspects allow the leadership to be both tasks- and relation-oriented. Overall, studies have shown that lean methodology is beneficial to an organization, and thus the leadership must reorient their functions and behaviors. 

References 

Aij, K. H., & Rapsaniotis, S. (2017). Leadership requirements for Lean versus servant leadership in health care: a systematic review of the literature.  Journal of healthcare leadership 9 , 1–14. https://doi.org/10.2147/JHL.S120166 

Aij, K. H., & Teunissen, M. (2017). Lean Leadership Attributes: A Systematic Review of the literature. Journal of health organization and management 31 (7-8), 713–729. https://doi.org/10.1108/JHOM-12-2016-0245 

Alefari, M., Salonitis, K., & Xu, Y. (2017). The role of leadership in implementing lean manufacturing.  Procedia CIRP 63 , 756-761. 

Chiarini, A., Baccarani, C., & Mascherpa, V. (2018). Lean production, Toyota Production System, and Kaizen philosophy . The TQM Journal, 30 (4), 425–438 doi:10.1108/tqm-12-2017-0178  

Holweg, M., & Maylor, H. (2018). Lean leadership in major projects: from "predict and provide" to "predict and prevent." International Journal of Operations & Production Management

Hussain, M., & Hassan, D. (2016). The Leadership Styles Dilemma in the Business World. International Journal of Organizational Leadership 5 , 411-425. 

Laureani, A., & Antony, J. (2019). Leadership and Lean Six Sigma: a systematic literature review.  Total Quality Management & Business Excellence 30 (1-2), 53-81. 

Lin, A. C., Penm, J., Ivey, M. F., Deng, Y., & Commins, M. (2016).  Applying Lean Techniques to Reduce Intravenous Waste Through Premixed Solutions and Increasing Production Frequency. Journal for Healthcare Quality, 1.  doi:10.1097/jhq.0000000000000043 

Mahendran, S., Senthilkumar, A., & Jeyapaul, R. (2018).  Analysis of lean manufacturing in the automobile industry - a case study. International Journal of Enterprise Network Management, 9(2), 129.  doi:10.1504/ijenm.2018.093708  

Pearce, A., Pons, D., & Neitzert, T. (2018). Implementing lean—Outcomes from SME case studie s. Operations Research Perspectives, 5, 94–104 doi:10.1016/j.orp.2018.02.002  

Seidel, A., Saurin, T. A., Marodin, G. A., & Ribeiro, J. L. D. (2017). Lean leadership competencies: a multi-method study.  Management Decision

Seidel, A., Saurin, T. A., Tortorella, G. L., & Marodin, G. A. (2019). How can general leadership theories help to expand the knowledge of lean leadership?.  Production Planning & Control 30 (16), 1322-1336. 

Shortell, S. M., Blodgett, J. C., Rundall, T. G., & Kralovec, P. (2018). Use of lean and related transformational performance improvement systems in hospitals in the United States: Results from a national survey . The Joint Commission Journal on Quality and Patient Safety, 44 (10), 574–582 doi:10.1016/j.jcjq.2018.03.002  

Toledo, J. C., Gonzalez, R. V. D., Lizarelli, F. L., & Pelegrino, R. A. (2019). Lean production system development through leadership practices.  Management Decision

Tortorella, G., van Dun, D. H., & de Almeida, A. G. (2019). Leadership behaviors during lean healthcare implementation: a review and longitudinal study.  Journal of manufacturing technology management . doi:10.1108/JMTM-02-2019-0070 

van Assen, M. F. (2018). Exploring the impact of higher management’s leadership styles on lean management.  Total Quality Management & Business Excellence 29 (11-12), 1312-1341. 

Van Assen, M. F. (2018). The moderating effect of management behavior for Lean and process improvement.  Operations Management Research 11 (1-2), 1-13. 

Van Dun, D. H., Hicks, J. N., & Wilderom, C. P. (2017). Values and behaviors of effective lean managers: Mixed-methods exploratory research.  European management journal 35 (2), 174-186. 

Varma, B. P., & Singh, D. (2018). Lean management planning in Indian cement industries and its effect on industrial psychology.  International Journal of Enterprise Network Management 9 (2), 91-107. 

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