Lean 911

How Compensation Systems Can Kill a Lean Transformation


Listen Later

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.

...more
View all episodesView all episodes
Download on the App Store

Lean 911By Mark DeLuzio

  • 4.1
  • 4.1
  • 4.1
  • 4.1
  • 4.1

4.1

14 ratings


More shows like Lean 911

View all
Money Guy Show by Brian Preston and Bo Hanson

Money Guy Show

3,212 Listeners

Lean Blog Interviews - Healthcare, Manufacturing, Business, and Leadership by Mark Graban

Lean Blog Interviews - Healthcare, Manufacturing, Business, and Leadership

46 Listeners

Coaching for Leaders by Dave Stachowiak

Coaching for Leaders

1,452 Listeners

Fantasy Football Today by CBS Sports, Fantasy Football, FFT, NFL, Fantasy Sports, Rookies, Rankings, Waiver Wire

Fantasy Football Today

8,259 Listeners

Fantasy Footballers - Fantasy Football Podcast by Fantasy Football

Fantasy Footballers - Fantasy Football Podcast

29,348 Listeners

Gemba Academy Podcast: Lean Six Sigma | Toyota Kata | Productivity | Leadership by Ron Pereira: Lean Thinker & Co-Founder of Gemba Academy

Gemba Academy Podcast: Lean Six Sigma | Toyota Kata | Productivity | Leadership

197 Listeners

HBR IdeaCast by Harvard Business Review

HBR IdeaCast

1,829 Listeners

WLEI - Lean Enterprise Institute’s Podcast by Lean Enterprise Institute

WLEI - Lean Enterprise Institute’s Podcast

21 Listeners

My First Million by Hubspot Media

My First Million

2,648 Listeners

All-In with Chamath, Jason, Sacks & Friedberg by All-In Podcast, LLC

All-In with Chamath, Jason, Sacks & Friedberg

9,812 Listeners

A Bit of Optimism by Simon Sinek

A Bit of Optimism

2,188 Listeners

Dwarkesh Podcast by Dwarkesh Patel

Dwarkesh Podcast

484 Listeners

The Lean Solutions Podcast by Patrick Adams

The Lean Solutions Podcast

19 Listeners

Lean Made Simple: Transform Your Business & Life One Step At A Time! by Lean Made Simple

Lean Made Simple: Transform Your Business & Life One Step At A Time!

21 Listeners

Chain of Learning: Empowering Continuous Improvement and Lean Change Leaders by Katie Anderson

Chain of Learning: Empowering Continuous Improvement and Lean Change Leaders

27 Listeners