The Lean Strategy: Using Lean to Create Competitive Advantage, Unleash Innovation, and Deliver Sustainable Growth

CHAPTER 6

A New Formula for Growth

A Lean strategy compounds value dynamically over time.

Now that we’ve examined how Lean thinking shapes the way organizations are managed and led, let’s examine how Lean presents a fundamentally different way to think about strategy—the decisions and actions companies make, as well as the accounting and finance systems used to support these actions and that serve as a proxy for what the company values. As Toyota and other Lean exemplars reveal, the Lean strategy operates by an alternative formula for growth over time—a compounding of both top-line growth while systemically reducing bottom-line expenses, creating ...