Lean Manufacturing focuses on delivering what matters most to your customers while eliminating anything that doesn’t. But determining what your customers genuinely value can be one of the most challenging aspects of the process.You have to go deeper than surface-level wants or assumptions. You need to understand what they say they want, but also interpret what they genuinely need, even if they can’t put it into words.
Defining value this way is the backbone of Lean. It drives smarter processes, happier customers, and a stronger bottom line.
What Does “Value” Really Mean?
In Lean, value boils down to one question: What is your customer willing to pay for? It might be faster service, better quality, or more customization. But it’s not always obvious. Customers don’t always know how to articulate their needs; sometimes, they only discover what they value after experiencing it.
Smartphones and smartwatches are good examples. Before they existed, people weren’t clamoring for them – in fact, if described to them, most people would have scratched their heads or questioned why they’d need something like that. But now, they’re indispensable. That’s the kind of value that goes beyond what customers can articulate. Your job as a leader is to figure out what they’ll value before realizing they need it.
The Balancing Act of Efficiency vs. Experience
Lean isn’t just about making everything faster or cheaper, even if those attributes are what your customer says they value most. Lean helps make everything better for your customer. Sometimes, that means embracing things that might seem inefficient on paper because they deliver a better experience.
Think about airlines. Boarding with separate lanes for premium and general passengers is not the most efficient process overall. But for premium passengers, that exclusivity adds value, even if it doesn’t save time – the plane doesn’t get them there any faster just because they boarded early. But they perceive the value of getting comfortable, having a larger seat, enjoying some snacks or a drink onboard. If asked what they value most, this customer might say saving time. In reality, it’s being comfortable or feeling like a VIP.
How To Know What Your Customers Value
To really get this right, you need a clear, customer-focused approach. Here are some steps to help you identify and deliver value:
- Listen. Listen Deeper: Start with customer feedback. Ask them what they need, what frustrates them, and what would improve their experience. But don’t stop there. Customers often describe the symptoms of their problems, not the root causes – and they might not know the root cause. They might not know they’re describing symptoms. Your job is to dig deeper. If they say they want faster service, what they might really want is reliability.
- Map Out Your Processes: Look at every step of your workflow and ask: Does this directly help the customer? If it doesn’t, it’s probably waste. Eliminating redundant steps like excessive approvals or repetitive inspections can save time and resources without compromising quality.
- Challenge Your Assumptions: It’s easy to think you know what your customers want, but assumptions can lead you into the wrong direction. Validate your ideas with data and direct interactions. Sometimes, what you think matters most to your customers barely registers for them. Be careful too of injecting your own biases or preferences. Just because you dislike the color green doesn’t mean your customers agree.
- Adapt and Evolve: Customer needs change, and so should your processes. Stay flexible and open to new ideas. Build a culture of continuous improvement where feedback drives your evolution.
- Innovate with Intention: Innovation doesn’t always mean inventing something new. Sometimes, it means refining what you already have. Small tweaks—like adding a feature or simplifying a process—can make a big difference if they solve real customer problems.
Lean Lessons for Every Business
The principle of identifying value applies far beyond manufacturing. In healthcare, it might mean reducing patient wait times by eliminating unnecessary paperwork. In software, it could involve creating interfaces that are intuitive and user-friendly. And in retail, it might be offering personalized recommendations that make customers feel understood.
No matter your industry, the question is the same: Are you doing what matters most to your customers or just doing what’s easiest for you?
Leadership’s Role in Driving Value
As a leader, it’s your job to champion a customer-first approach. That means setting the tone, but also building systems and teams that prioritize customer value. It also means thinking ahead—what do your customers need now, and what will they need tomorrow? The best leaders empower their teams to explore, innovate, and adapt to stay aligned with customer expectations.
The Ongoing Pursuit of Value
Identifying value isn’t a one-and-done task. It’s an ongoing process of listening, learning, and improving. Markets shift, customer needs evolve, and new challenges emerge. Staying customer-focused means staying flexible and proactive.
Lean and Lean Manufacturing teaches us that success doesn’t come from doing more; it comes from doing what matters most. Keeping your customers’ perspectives at the center of everything you do can inform how you streamline operations, strengthen relationships, and create lasting value for them and your business.