Lean and 4 levels of lean enterprise

Quỳnh Chi |

According to Anphabe Company, lean enterprises will go through 4 levels.

Anphabe Company believes that to successfully implement the transformation, businesses need to identify where they are in the 4 levels of evolution of the streamlining process. Each level requires a different set of management capabilities and mindsets.

Level 1: Compact to survive

This is the "bloodstaining" phase. The only goal is to maintain cash flow and survival.

Cutting variable costs, temporarily suspending long-term projects, streamlining the personnel apparatus based on quantity.

Losing important talents and breaking the trust of employees if the media is not skillful.

Business perspective: This is a temporary measure, not a sustainable strategy.

Level 2: Compact to be effective

When the storm has passed, businesses begin to standardize the "wreckage".

Applying technology, process automation (RPA), optimizing supply chains. The focus is on working "smarter", not "more".

Minimize errors, increase market response speed.

Level 3: Compact to increase capacity

This is an important turning point: Switching from "cut" to "increase".

Invest heavily in multi-skilled training. Businesses may have fewer people, but each individual possesses stronger enforcement capacity and higher initiative.

Business perspective: People become assets instead of costs. Simplification at this time is to release human potential from meaningless administrative jobs.

Level 4: Compact to rebuild

At the highest level, streamlining becomes an organizational culture.

Businesses no longer wait for changes to change. They continuously "destroy" old procedures to build a more adaptive new business model.

Creating a sustainable competitive advantage and extremely high resilience to all market shocks.

Quỳnh Chi
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