Evaluating a continuous improvement initiative using Stakeholder Value Mapping

Abstract

Lean implementations have had a mixed record of success in organizations. One possible explanation for this observation is that lean is built upon a value system that is not always shared by the organizations trying to implement the philosophy. For example, one element of lean is that employees at all levels of the organization are expected to share ideas for improving processes. This idea might seem foreign in companies where responsibility for process improvement comes only from management or specialized departments. Lean would not be expected to flourish in an environment where employee innovation and initiative is not valued. As this example demonstrates, lean loses its effectiveness when its values are incompatible with those prevailing in an organization. Determining this compatibility has not been straightforward to date. Whereas lean literature is filled with methods and tools for discovering and removing waste, there is little guidance on how to determine if lean can be successfully applied to an organization's unique socio-technical system. Stakeholder Value Mapping (SVM), a technique adapted from the field of Enterprise Management, is presented to address this need.

(cont.) Whereas SVM has already been developed for use at the enterprise level, this thesis aims to extend the applicability of SVM to the micro level. A methodology for mapping stakeholder values around a specific lean project at Raytheon's Integrated Air Defense Center is developed. The project, a pull system for bolted cabinets, is described in detail in this thesis as a case study. We find that SVM alone does not yield sufficient data to guide lean implementations. It is, however, an effective method for understanding the stakeholder interests that can serve as barriers to lean. Leaders trying to bring lean into their organizations will find SVM a promising tool for determining where to initially focus their attention. If lean and stakeholder values are aligned, the groundwork will be set for a traditional lean implementation that focuses on well-known tools for discovering and removing waste. On the other hand, if lean and stakeholder values differ significantly, consideration should first be given to aligning organizational interests with the lean strategy.