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

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

46 Listeners

Marketplace by Marketplace

Marketplace

8,704 Listeners

Planet Money by NPR

Planet Money

30,752 Listeners

Frank Off The Radio: The Frank Skinner Podcast by Avalon

Frank Off The Radio: The Frank Skinner Podcast

306 Listeners

Freakonomics Radio by Freakonomics Radio + Stitcher

Freakonomics Radio

32,157 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

198 Listeners

We Study Billionaires - The Investor’s Podcast Network by The Investor's Podcast Network

We Study Billionaires - The Investor’s Podcast Network

3,383 Listeners

The Jordan Harbinger Show by Jordan Harbinger

The Jordan Harbinger Show

11,989 Listeners

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

WLEI - Lean Enterprise Institute’s Podcast

20 Listeners

Think Fast Talk Smart: Communication Techniques by Matt Abrahams, Think Fast Talk Smart

Think Fast Talk Smart: Communication Techniques

786 Listeners

A Bit of Optimism by Simon Sinek

A Bit of Optimism

2,168 Listeners

The Lean Solutions Podcast by Patrick Adams

The Lean Solutions Podcast

19 Listeners

Huberman Lab by Scicomm Media

Huberman Lab

29,276 Listeners

The Economics of Everyday Things by Freakonomics Network & Zachary Crockett

The Economics of Everyday Things

1,631 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