As a preview to the upcoming Lean Accounting Summit, Orry Fiume will describe the difference between traditional and lean strategic thinking, based on a new book, The Lean Strategy, that he co-authored with Dan Jones, Michael Balle and Jacques Chaize. This is a free webinar offered by Lean Frontiers on Tue, Aug 15, 2017 2:00 PM - 2:40 PM EDT. A preview and a small portion of the webinar is displayed below. Most companies approach lean as a cost reduction program. Although they may achieve some short-term gains, the gains are a fraction of what they could be and generally are not long lasting. However, those companies that recognize lean as a complete strategy achieve competitive advantages that yield substantial financial gains. Lean Account Summit is part of Lean Leadership Week that starts with the 2-day Lean People Development Summit and ends with the 2-day Lean Accounting & Management Summit. Between the 2 events is a unique offering of workshops applicable to both sets of attendees. Join executives and their teams from around the globe and explore best practices as it relates to developing people and managing the business of the lean enterprise. Lean Leadership Week takes place September 11-15, 2017 in the charming Southern city of Savannah, GA! About:  Orest (Orry) Fiume is the retired CFO and Director of The Wiremold Company. Orry led Wiremold’s conversion to lean accounting in 1991 and went on to install lean accounting at more than 20 Wiremold acquisitions. He is co-author of the 2004 Shingo Prize winning book Real Numbers: Management Accounting in a Lean Organization.

1. ⁻ Creating Competitive Advantage
⁻ Implementing the Strategy
Adapted from The Lean Strategy Book & presentation by Orest Fiume, 2017 1

2. Traditional
Thinking
about
Implementing
Strategy
Top down decision-making
Separate strategy from execution/operations
Manage by the numbers
Processes & systems designed by expert: Buy “best
practices”
Silos & rule-based bureaucracy
Launch many new projects
2Adapted from The Lean Strategy Book & presentation by Orest Fiume, 2017

3. TOP-DOWN Decision-Making
3
STRATEGY
EXECUTION
Adapted from The Lean Strategy Book & presentation by Orest Fiume, 2017

4. Lean Decision-Making
4
COMMIT
ACCEPT
Adapted from The Lean Strategy Book & presentation by Orest Fiume, 2017

5. FORM a Learning Plan
• Commit to a Learning Curve rather than an
Action Plan
• What training is needed for daily problem solving?
• What team kaizen efforts are needed?
• What targeted experiments are needed to identify
root cause and countermeasures?
5Adapted from The Lean Strategy Book & presentation by Orest Fiume, 2017

6. • By going to the Gemba
• Support solving immediate problems
• Show commitment to learning
• See the underlying problems
• Capabilities needed to solve them
FIND the right problems
6Adapted from The Lean Strategy Book & presentation by Orest Fiume, 2017

7. FACE Reality
• Chose Operational Process Metrics that:
• Give a clear picture of the current condition
• Clearly indicate progress in the desired Progress Direction
• Convert to Lean Management Accounting
7Adapted from The Lean Strategy Book & presentation by Orest Fiume, 2017

8. FRAME the Issues
• Describe the challenges you have in
terms of Improvement Directions
that all can understand
8 Adapted from The Lean Strategy Book & presentation by Orest Fiume, 2017

9. Organize for
learning
People-centric systems & processes
Line Managers are responsible for building capabilities
through daily practice of Learning By Doing
Ask questions rather than tell people what to do
Silos & rule-based bureaucracy
Not about optimizing or rolling out “best practices:
9
Respect for people = challenge and support
Adapted from The Lean Strategy Book & presentation by Orest Fiume, 2017

10. Implementing
Lean Strategy
Requires
Lean Thinking
It is a Cultural Change That
Requires Leadership…
Because in the End
It’s All About People
10Adapted from The Lean Strategy Book & presentation by Orest Fiume, 2017