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Lean Business Model in Pakistan! What is It and Its Benefits

Coming together is a beginning; keeping together is progress; working together is success - Henry Ford

So yesterday I was reading some blogs on Google to stay updated with what’s latest in Business practices and came across Lean Business Model. Not to name and shame any business, but the definitions and the process of the Lean business model in some blogs were so out of balance that if Henry Ford read that, he’d die (again).

Writing content is one thing, but taking someone’s work and misrepresenting it is a whole new ball game. As a fan of Henry’s cars and his work in the manufacturing industry, I felt the urge to correct what’s on the internet and talk about the Lean business or Lean business model. But before I start explaining Lean business, it’s better to understand its definition and know what it is.

What is Lean Business

A lean business is a company that focuses on continuous improvement through minimizing waste and improving business operations while eliminating friction for customers. In simple terms, Lean business means, continuous improvement in business processes or products/services to give your customers the best of the best.

Lean business utilizes the principle of Kaize, which is a Japanese term for “good change” or “improvements.” Over the years, Kaizen has been shaped into “continuous improvement” which is the best way to improve business processes.

As an IT entrepreneur and career coach, I have advised many businesses to restructure their business processes and operations to optimize their team’s output. In many cases, I’d find businesses performing repetitive tasks and having their team go through a tedious cycle of operational deliverables to achieve subpar results.

That’s not how lean business works. It’s actually the opposite of what we’re practising in Pakistan. Henry Ford states that by breaking a critical task into small components we can deliver near-accurate results in less time. That’s one of the benefits of lean business.

Benefits of Lean Business

Lean business can be applied in all aspects of business. Be it improving production, adding key features to your product or service or simply optimizing your team.

1. Improvements in Product

Lean business is centred around delivering maximum value. So it’s no surprise that product improvements are the first benefit of the lean business. Through continuous changes in the product based on customer feedback, businesses can greatly change the outcome. This methodology can be implemented in the IT industry where companies heavily rely on selling software solutions to businesses. Putting Kaizen in practice allows businesses to reshape their digital product - but how do we do that?

• Launch customer feedback programs targeting two batches. One batch should cater to customers that are happy with their purchase and the other to target the ones that aren’t. Compare their feedback to find a median statement - something both batches mentioned. This could be the key to creating a universal product that everyone will love.
• Run tests on your product to determine product failure. If you have a physical product try a drop test. If you’re selling software solutions, try hacking into the system or hire someone to break your code. You can also run inter-department competitions to break the system or bypass logging to see your product’s common flaws.
• Offer free beta to users to determine operational flaws in the initial stages of your product. This is the best way to implement the Kaizen principle in your lean business and it’s easy to find common loopholes that your customers can exploit.

2. Improve Efficiency and Productivity

Lean business can be implemented internally within your organisation to improve productivity. By optimizing workflow and integrating AI, you can achieve operational efficiencies through steady growth. For instance, most service businesses hire resources to talk to customers on chat. Out of 10 potential customers who initiate chat, only 2-3 are likely to convert. Those that are most likely to purchase from your business, don’t require much convincing through chat.

They immediately request a telephone conversation with a sales representative or a project manager. In this situation, it’s healthy for the value stream to integrate AI in customer chat interactions. When the lead is mature, they’ll request human intervention and communication which you can allocate to the salesperson.

3. Improve Employee Engagement

Lean businesses don’t just focus on improving the product or business operations. It’s a holistic approach to improving everything within and outside an organisation for better results. When employees receive autonomy in their work they feel empowered enough to take bold risks and steps that lead to a healthy work environment that fosters creativity and growth.

By implementing employee-centric values organizations create a workplace where resources feel appreciated, welcomed, strengthened and work towards the company’s success. All in all, when businesses learn to align their goals with their resources, there’s no stopping them. As a result, resources focus on achieving their personal targets which ultimately fuels an organizations revenue stream and increases profitability.

4. Improved Lead Time

Lean business focuses on improving an organisation’s value by streamlining operations and other tasks to make things easier within a company. Kanban board and other project streamlining tools are great for aligning a team on a singular goal and identifying project bottlenecks. When these frictions are identified, organizations can greatly improve their efficiency and enhance value for the customer by speeding up their deliverables.

The IT industry in Pakistan has been going through a painful phase of biting on more than they can chew. Taking up projects and missing delivery times greatly affects business output and reputation. Through scrums, project mapping and detailed structured meetings, businesses can improve their bottom line and push projects faster than they used to.

Final Verdict

In conclusion, the Lean Business Model is not just a buzzword or a fleeting trend—it’s a transformative approach that can revolutionize how businesses operate, innovate, and grow. As Henry Ford wisely said, working together is the key to success, and Lean principles provide the framework to achieve just that. By minimizing waste, optimizing processes, and fostering a culture of continuous improvement, businesses in Pakistan—and beyond—can unlock their true potential.