Lean 911

If your Lean transformation feels like it's stuck, your compensation system might be part of the problem. In this episode, Mark tackles a question from Finland about how incentives influence behavior, often in ways that completely undercut Lean principles. He shares how traditional pay structures and metrics, especially those tied to cost and output, often reward the wrong actions. You'll hear examples from the shop floor to the C-suite, including a mining company that saved money on parts but paid the price in lost production. Mark draws on his experience leading the Danaher Business System to explain why companies need to rethink how they measure success. He breaks down what a healthy compensation structure looks like in a Lean environment, how to align cross-functional teams around shared goals, and why hitting 75 percent of a breakthrough can be a win worth celebrating. This episode speaks to anyone who’s trying to make Lean work while fighting against legacy incentive systems. Mark offers a grounded look at how misaligned rewards can quietly unravel even the best improvement efforts, and what it takes to turn that around.

Mark DeLuzio discusses the intangibles that made all the difference to the success of the Danaher Business System. He also discussed the main ingredients of DBS, the 5Ps: Purpose, Principles, People, Plan, Process.

Some metrics were never meant to survive in a Lean world. OEE and absorption accounting might sound smart on paper, but they push the exact behaviors that wreck flow, bury quality issues, and inflate inventory. The result? A system that looks efficient but delivers chaos. Mark DeLuzio breaks down how these outdated measures keep companies locked in batch production and bad habits. He shares firsthand stories from the factory floor and the boardroom, including a jaw-dropping moment with a CFO who learned the hard way that ROI is not a reason to keep machines running at all costs. This episode is for anyone tired of playing metric games that look good in reports but hurt performance where it matters. If you’ve struggled to explain why certain KPIs feel off in a Lean environment, you’ll walk away with clear examples and a smarter alternative to measure what actually matters.

Replay from our live April 7 webinar. Most Lean initiatives stall because leaders chase tools instead of building capability. In this rare unfiltered session, Mark DeLuzio teams up with seasoned transformation veteran Mark Forkun for a blunt conversation on the realities of Lean, why most organizations fake it, and what it takes to get results that last. From the hidden failure of matrix org charts to the silent sabotage of cost accounting, this webinar replay is a wake-up call for anyone tired of surface-level improvement. You'll hear how Toyota's true strength isn't what's on the walls, but what's in the minds. You'll also get hard-won insight on problem solving, value stream management, and the dysfunction of Lean "audits" that create motion without impact. Plus, Mark Forkun shares a preview of his new book and the habits he believes matter most for sustaining Lean results. Timestamps 00:02:10 Why there’s no silver bullet in Lean 00:04:30 What you don’t see is what matters — Culture, mindset, and invisible systems > visible tools. 00:07:40 Value stream management vs. functional silos 00:13:00 How Lean accounting drives better decisions — Traditional cost systems sabotage transformation. 00:24:00 Cost of poor quality is hidden everywhere — Why finance must stop tracking irrelevant metrics. 00:25:10 Lean ≠ TPS 00:33:00 Standard work and problem solving 00:47:00 Philosophy and principles lead the way 00:54:00 Why Gemba boards fail and audits backfire — Most Lean efforts are theater, not transformation. 01:00:00 Tech without waste elimination = faster waste — AI and ERP as enablers, not solutions.

In this episode, Mark DeLuzio talks about Lean Horizons' Managing Director Jon Boucher discussing the span of control necessary for problem-solving. In particular, Mark and Jon address the following: What is span of control, and why is it important for any lean journey Problem Solving – What is the definition of a problem? What is meant by standards? How do you begin, how deep do you go, and what is the timeline? What is the purpose of a line? (to expose the problems) Who "owns" problem-solving? What is the role of the operator?

In this episode, Mark DeLuzio talks about why Lean/CI people are not being listened to and gives sage advice as to how to reverse this trend.

Do you want to get the attention of leadership? Then you need to speak their language. In this episode, Mark DeLuzio discusses FCF %NI and why this measure is key to a successful Lean transformation.

You will never transform your company by point kaizen alone. Learn why traditional Japanese consultants were not enough in order to propel Danaher into a space all by themselves. Kaikaku (radical change) was a hallmark of Danaher’s Strategy Deployment process.

Mark discusses how companies develop On-Time Delivery KPIs (OTD) that do not reflect the customer's needs. Learn how Mark calls these "Watermelon KPIs" – GREEN on the outside and RED on the inside. Do your OTD metrics truly drive customer satisfaction?

Mark discusses building profitability into the design process via the Target Costing methodology. Roughly 70% of a product’s cost is baked into the product's design and process, leaving only 30% to Kaizen (post-design). Learn from Mark’s experience as CFO of Danaher’s JAKE Brake, where Target Costing played a significant role in JAKE’s profitability.

Mark talks about the types of Value Stream organizations and their benefits. But why are organizations reluctant to move to a Value Stream structure? Mark discusses the reasons why.

Mark talks with Jerry Wright on his new book about the ills of MRP. Jerry talks about his experience of seeing failure after failure with companies trying to perfect MRP. He argues that a Lean Transformation is impossible if MRP is used as the primary resource planning tool. MRP was first introduced in 1964 and despite its failures, is still the tool of choice for so many companies today.

Mark talks with an esteemed Lean colleague, Griselda Abousleman, whose life story should be an inspiration to all minority women, as well as to all of us who are struggling to make it in this world. Her incredible story is chronicled in her newly released book, “From the Border to the Boardroom.” Griselda talks about her upbringing in a Texas border town and her tenacity to refuse to give in when others told her she cannot succeed. Her rise from the border town of Brownsville, Texas, to an Ivy League education to the top echelons of Corporate America, and now, a successful entrepreneur, should inspire all. Known globally, Griselda is the founder of a Lean consulting and executive coaching business, Lean Business Excellence (www.businesscoachingresults.com). Her personal mantra, "Let your optimism carry you forward,"  is not only a lesson for business but a lesson in life!

Most people define defects based on an engineering product specification. There is nothing wrong with this. However, in this episode, Mark DeLuzio explains why we need to broaden our thinking when it comes to defining defects.

Are you focusing on productivity as your barometer of Lean improvements? Mark DeLuzio discusses why this approach may be leading your Lean transformation into a brick wall.