LEAN methodology

At its core, Lean is a business methodology that promotes the flow of value to the customer through two guiding tenets: continuous improvement and respect for people. Jim Benson of Modus Cooperandi defines Lean methodology in this way: “Lean is both a philosophy and a discipline which, at its core, increases access to information to ensure responsible decision making in the service of creating customer value.

Lean methodology is not a new concept, but its modern application to business is constantly evolving. Before Lean was known as a business methodology, it was an approach to the manufacturing process. Keep reading to learn more about the history and application of Lean, as well as key Lean methodology principles.

Roots in Manufacturing

Lean methodology originated with the Toyota Production System, or TPS, which revolutionized the manufacture of physical goods in the 1950s, ‘60s, and beyond. Lean maintains its hold in manufacturing, but has also found new applications in knowledge work, helping businesses in all industries eliminate waste, improve processes, and boost innovation.

Expansion into Software Development

Lean methodology’s first applications outside of manufacturing appeared in software development, in a discipline known as Agile methodology. Conceptually, Agile software development is a Lean development methodology for optimizing the software development cycle.

Software development is a natural application of Lean methodology because, much like manufacturing, it:

Generally follows a defined process

Results in the delivery of tangible value

Over time, the success of applying Agile and Lean principles to software development piqued the interest of other departments and other industries. Today, Lean development methodology is being applied to knowledge work that follows a process – which is essentially all knowledge work.

Pillars of Lean Methodology: 

Continuous Improvement 

Respect for People

There are two primary concepts that guide all practice of Lean methodology, which we call the Pillars of Lean. They are: continuous improvement and respect for people.

Continuous improvement

Continuous improvement is one of the Pillars of Lean, which guide all Lean methodology practice.

When some people think of Lean methodology, they equate it with the elimination of waste. While it’s true that Lean organizations aim to eliminate waste (defined as anything that does not deliver value to the customer), the goal is not elimination – it’s value creation.

So how do we create value? We become learning organizations. We set out to learn what our customers want and need, and how to eliminate what they don’t. We work to continuously improve so that our value stream, from end to end, is continuously optimizing to create more value for the customer.

How do we learn what is valuable? We deliver quickly. When we deliver quickly, based on what we know about the customer, we are able to get feedback quickly. And whether what we deliver is a failure or a success (or somewhere in between), we gain valuable insight into how to improve. This is how we achieve business agility; this is how we, through the process of creating value, eliminate waste.

The continuous improvement cycle helps organizations practicing Lean methodology differentiate themselves from competitors.

Lean organizations are nimble, humble, and methodical. We encourage employees to foster a learning mindset, and more specifically, a testing mindset. We test ideas with our target market before we throw dollars at them. In this way, Lean methodology is as much of a path toward innovation as it is a form of risk management.

Respect for frontline workers

Often, the best ideas come from the people with their hands on the product. In most organizations, decisions are made at the top of the organization and trickled down to the frontline. Lean thinking encourages allowing everyone, especially those closest to the product and the customer, to have an equal voice, to ensure that the voice of the customer, and those doing the work, is heard. This is the Lean concept of going to the gemba – going to the place where the work is done – to get ideas for improving work and creating value. Lean thinking says that good people want to do their best work and are motivated to make decisions that optimize their time and talent to create the most value for the customer. Going to the gemba allows the organization to capture the best ideas and bring them to fruition.

Lightweight leadership

Elevating the voice of the frontline worker evolves the role of leadership. In an organization structured around a command-and-control form of leadership, the role of the leader is to set the course of what to do, but also how and when.

Lean leadership empowers employees with the autonomy to make decisions, the opportunity to master their craft, and the purpose (the “why” behind the work) to understand the value of their efforts. The role of the leader is to define the goal at hand, and then allow their talented employees to discover the most appropriate course of action toward that goal.

Leaders are charged with the task of bringing the best out of their employees and removing any obstacles that could prevent their team from delivering value to the customer. Lean leadership is better defined by what it is not than what it is. It’s not command-and-control, it’s not micromanaging, and it’s not driven by ego or the power of position. It’s leading in the truest sense.

Lean Methodology Summary

In short, Lean methodology is a way of optimizing the people, resources, effort, and energy of your organization toward creating value for the customer. It is based on two guiding tenets, continuous improvement and respect for people. Teams all over the world, from sales to software development, are using Lean methodology principles to sustainably deliver more value to their customers, while building healthier, more resilient organizations.

Rachaelle Lynn - https://www.planview.com/resources/articles/lean-methodology/

Types of entrepreneurship

Becoming an entrepreneur requires passion, perseverance and fervor. Whether you are just starting out and opening a business, or developing an existing one, understanding the different types of entrepreneurship is an important part of your journey to success and business ownership. 

 By focusing on the unique differences of entrepreneurship, you’ll be able to address your business’ challenges with a deeper awareness of how you should handle them and what types of resources you’ll need. From picking which type of venture you want to develop, to creating a business website that targets the right audience, there are many steps you’ll need to take to make money as an entrepreneur. 

What are types of entrepreneurship? 

While the basic principles of entrepreneurship are the same—planning, starting and operating a business—the distinct nuances and skills needed vary depending on the type of business you plan to start. Becoming an entrepreneur requires the ability to define these differences, and pinpoint the unique elements that are needed. 

Traditionally, entrepreneurship is categorized into four main types: small businesses, scalable startups, large companies and social entrepreneurs. These models cover the fundamentals of starting business ownership and focus more on the company itself, rather than the qualities of the entrepreneur. However, just as the world continues to change, so do businesses. This means new opportunities for risk-taking and innovative game changers to pave the way in diverse entrepreneurial ways. 

With this in mind, even though there are quite a few similarities when it comes to the challenges that all business owners will face, there are certain types of entrepreneurship defined by the skills, characteristics and personality traits of the entrepreneur. At the end of the day, it is the way you choose to run your business that makes them differ from one another. 

10 most common types of entrepreneurship: 

Small businesses entrepreneurship 

Scalable startup entrepreneurship 

Intrapreneurship 

Large company entrepreneurship

Imitative entrepreneurship 

Innovative entrepreneurship 

Buyer entrepreneurship 

Researcher entrepreneurship 

Hustler entrepreneurship Social entrepreneurship 

1. Small business entrepreneurship 

This type of entrepreneurship refers to any kind of small business that has been created by one person, without the goal to expand or franchise. For example, if you were planning to open a nail salon, a general store or a taco truck your goal would be to launch a single store. You’d likely plan on hiring local employees or even family members to get your business off the ground and would need to invest your resources directly into the business. In this type of business, you only make a profit if your company does, meaning you need to be very driven, responsible and committed to your vision. In 2020, there were 33.7 million small businesses in the United States, accounting for 99.9% of companies, proving that small business entrepreneurship is on the rise. small business types of entrepreneurship website template 

2. Scalable startup entrepreneurship 

Rooted in the idea of changing the world, scalable startups focus on how to create a business model that is both repeatable and scalable (more sales with more resources). From the get go, this style of entrepreneurship begins with the hope of rapid expansion and big profit returns. Many startups have a similar ‘garage to riches’ narrative, beginning with a simple idea that is brought to life by the tenacity of entrepreneurs with the support of investors. Amazon, Google and Apple are all examples of trailblazing startups that have changed the world. In order to establish a successful startup, you need to pay attention to the amount of money you have (which is often supported by venture capital investors) and the human resources behind your business. The key to starting this type of business model is knowing the long-term plans for profitability and the ways in which your company will grow, both for the sake of your investors, and your own. Scalable startup entrepreneurship website template 

3. Intrapreneurship 

Unlike an entrepreneur, who is also the founder, designer and manager of a business, an intrapreneur is a self-motivated, and action-oriented employee who thinks out of the box and works as an entrepreneur within a company. Intrapreneurship is a way that companies can support and encourage employees that have entrepreneurial spirit. Shutterstock, for example, hosts an annual 24-hour hackathon which lets employees pursue innovative ideas that will benefit the company. Another example of an intrapreneurial innovation is Facebook’s ‘Like’ button which was also created in a similar hackathon event, which is now an integral part of the brand. 

4. Large company entrepreneurship 

Large company entrepreneurship refers to companies like Disney, Google, Toyota, and Microsoft who have finite life cycles, as in, they keep innovating and offering consumers new products that are variants around their core product-line. A distinguishing feature of this type of entrepreneurship is that it is not starting a new business, rather creating new products or subsidiaries within an existing company, or acquiring smaller businesses (like when Facebook bought Instagram and WhatsApp). More specifically, these divisions are focused on reaching new markets, expanding the customer base and growing the business - sometimes via new company sites. Another component of large company entrepreneurship is a commitment to building company culture, ensuring that as a company expands all employees are a part of the growth. Large company entrepreneurship website template 

5. Imitative entrepreneurship 

Imitation is the best form of flattery, and an imitative entrepreneur (also referred to as an adoptive entrepreneur) is one who copies what successful innovative entrepreneurs have previously done, most often with lower financial risks and limited resources. If you are using an imitative entrepreneurship style, in essence you are copying an idea but finding ways to improve it. By taking note of others' mistakes and finding creative ways to make a business better, you can become a lucrative entrepreneur. 

6. Innovative entrepreneurship 

Innovative entrepreneurs, as the name suggests, are constantly trying to come up with the next big thing. If you have groundbreaking ideas of how to start a business or specific services and products that can become business ventures, you might be an innovative entrepreneur. As an innovator, you know you must always be aware of the current market conditions to find original and creative ways to disrupt them. Innovation refers not only to product ideas but also the ways in which business is conducted. Innovative entrepreneurship is all changing the status quo and pushing boundaries. Innovative entrepreneurship website template 

7. Buyer entrepreneurship 

You’ve probably heard the saying “money makes money”, and for a buyer entrepreneur this definitely rings true. Instead of figuring out how to raise money for a business, a buyer entrepreneur purchases either a developing or well-established company and helps them thrive. Unlike investors, a buyer entrepreneur is involved both financially and personally in the business, remaining active and directly helping the investment to grow. It is not uncommon for buyer entrepreneurs to hand off their leadership to someone else at some point, but they always maintain an active part in the businesses they purchase. 

8. Researcher entrepreneurship 

Researcher entrepreneurs rely on facts, data and the belief that with the right preparation and knowledge will be more likely to succeed. If this sounds like you, this is exactly what research entrepreneurship is all about—a great business idea paired with academic research, and an understanding of how to stretch limited resources to the max. Take a look at Nobel Prize winner and physicist, Theodor Hänsch, a researcher entrepreneur who co-founded MenloSystems, taking his winning optical frequency comb technology and using it to make products for the market. Researcher entrepreneurship website template 

9. Hustler entrepreneurship 

Don’t let the name throw you off, a hustler in business refers to a self-starter, a highly motivated person who is driven to succeed. This type of entrepreneurship style grows directly from the entrepreneur, who must be confident, fearless and have rigorous work ethic. If you are the type of person who can sell anything to anyone, is always aware of the next big thing and is able to recognize opportunities, you might just be a hustler after all. 

10. Social Entrepreneurship 

Social entrepreneurs are innovators whose main goal is to create products and services that both benefit the world, and make money. Social entrepreneurship relates to nonprofit, for-profit, or hybrid companies that are committed to social or environmental change. Some examples include educational programs, microfinance institutions, and companies that provide banking services in undeveloped countries. 

Toms shoes was a pioneer of social entrepreneurship, starting in 2006 offering a one-for-one sales model that gave a pair of shoes to a child in need for every pair of shoes sold. What separates social entrepreneurship from other types is the measure of success, in that the goal is not focused solely on financial gain but also on the social impact. Social entrepreneurship website template.

• (Cecilia Lazzaro Blasbalg
• •  - Nov 21, 2023 - https://www.wix.com/blog/types-of-entrepreneurship)