Lean Finance and Operations

We often hear the word “Lean” thrown around in operations meetings and strategy workshops. It’s usually tied to cutting waste, improving flow, or reducing cost. But when you strip Lean down to its essence, you find something deeper: a philosophy that transforms how people lead, not just how companies run.

Leadership during a Lean transformation isn’t just about implementing new systems. It’s about changing mindsets—starting with your own. After spending over a decade in operational finance and supporting process improvement initiatives, I’ve seen Lean succeed—and I’ve seen it fall flat. The difference is almost always leadership.

Here are five leadership lessons I’ve taken from Lean transformations—lessons that still shape how I lead and work today.

The Floor is the Best Classroom
Real Lean leaders don’t hide in offices. They go where the work happens.

When I was working with a mid-size electronics company, our COO—let’s call him Greg—would spend two hours every morning walking the floor. Not just to check boxes, but to genuinely understand what was happening. He’d ask the operators what was slowing them down, what ideas they had, and what was different from the day before.

Greg never rushed it. He’d lean over a bench, listen with intent, and take notes. And when we gathered for our daily stand-up meetings, his insights always reflected what he’d heard, not just what the dashboard said.

This is classic Gemba thinking—go to the source. The floor isn’t just where the product is made; it’s where trust is built and where problems show up before they become disasters. A good leader listens before they fix.

You Can’t Change the Culture Without Changing Yourself
One of the hardest truths in any transformation is this: the team watches what you do more than what you say.

We had an executive sponsor once who wanted to implement Lean tools—5S, kanban, takt time—you name it. But when problems came up, he would go into “fix-it” mode. He’d jump in, override team decisions, and push for quick answers. Over time, the teams became hesitant to bring up issues at all. Why bother, if they were going to be overridden?

Lean demands that leaders model continuous improvement, starting with themselves. That means giving up control, asking questions instead of giving orders, and being open to feedback.

James P. Womack, co-author of Lean Thinking, emphasized this when he said, “Most lean transformations fail because leaders try to change everything but themselves.” He was right. In my experience, no Lean initiative sticks unless the leader is willing to learn, unlearn, and stay humble.

Don’t Hide Problems—Shine a Light on Them
One of the most transformative cultural shifts in a Lean environment is how teams view problems. Traditionally, problems are seen as failures or something to blame. In Lean thinking, a problem is a signal. It’s a clue that something in the system needs to improve.

I remember one team leader who used to keep a whiteboard titled “Things That Went Wrong This Week.” Sounds counterintuitive, right? But it worked. Every Friday, the team would reflect on what happened, what they learned, and what they were going to try next week. No blame, just honest discussion.

That practice reminded me of Toyota’s famous andon system, where any worker could stop the line if something weren’t right. It takes guts to do that. But more importantly, it takes leadership that rewards visibility rather than punishes it.

The real job of a Lean leader is to create a space where people can speak up, flag risks, and improve the system without fear.

Lean Is a Long Game—So Lead Like It
Lean transformations don’t happen in a month. They take time, commitment, and consistency.

One of my mentors, who led operations at a food manufacturer, used to say: “You can’t ‘project manage’ culture.” His point? Metrics can move fast, but culture moves slow—and that’s okay. If your strategy is solid and your people are engaged, the results will follow.

Fujio Cho, a former president of Toyota, captured this well in his famous leadership approach: “Go see, ask why, show respect.” It’s not flashy, and it’s certainly not a shortcut. But it works.

If you’re leading Lean, play the long game. Avoid chasing only short-term savings. Focus on building capabilities, developing people, and fostering habits that last.

Leaders Are Teachers—Not Just Problem Solvers
It took me a while to realize that being helpful doesn’t always mean having the answer. In fact, when I was managing a financial planning team going through a process redesign, I found myself wanting to jump in and solve things for them. After all, I’d seen similar issues before. But every time I “rescued” them, I slowed their learning.

Lean flipped that for me. Instead of being the expert, I started asking better questions: What’s blocking us? What’s the root cause? What’s your hypothesis?

That coaching mindset made all the difference. The team didn’t just deliver better results—they started to lead their improvements. That’s when I realized the most powerful thing a leader can do in a Lean environment is to teach others how to see, think, and solve for themselves.

Closing Thoughts
Lean is often framed as a set of tools or techniques. But for leaders, it’s more like a mirror. It reflects your habits, your blind spots, and your impact on the people around you.

Whether you’re working in manufacturing, tech, finance, or healthcare, Lean has something valuable to teach about leadership: be present, stay curious, respect the people doing the work, and never stop improving.

So as you settle into your weekend, think less about what Lean can do for your KPIs—and more about what it can do for your leadership style.

Because in the end, Lean isn’t just about doing things better. It’s about becoming better.

Biographical References
Art Byrne – Former CEO of Wiremold, known for his hands-on leadership in Lean transformations. See: The Lean Turnaround (McGraw-Hill, 2012).

James P. Womack – Co-author of Lean Thinking and founder of the Lean Enterprise Institute.

Fujio Cho – Former President of Toyota, widely credited with reinforcing the principles of respect for people and go and see in leadership.