Ryan Stemen, MBA

Micro Lessons in Process Improvements

Ever wonder why process improvement often feels like a snowball effect? Once small changes start, they seem to compound—one improvement leads to another, and before you know it, efficiency gains ripple across the entire organization. The more waste you eliminate, the more others notice and want to get on board. It’s contagious.

But what’s strange is that not every company operates this way. Many businesses lack a mindset or an operational framework that encourages continuous improvement. Some don’t have a clear “code” for how things should be done, and without that, inefficiency can persist unchecked.

That’s where techniques like Six Sigma, Lean Manufacturing, The Toyota Way, and Kaizen Management Theory come into play. These proven methodologies help companies systematically eliminate redundancy, streamline processes, and remove inefficiencies. The goal is always the same: continuous improvement.

Real-World Lean Techniques in Unlikely Places

I’ve been fortunate to work for some large manufacturing companies in the Midwest. These experiences gave me a firsthand look at how Lean and Kaizen techniques operate in real-world settings. But here’s the twist—it wasn’t on the factory floor where I saw these principles in action. It was in the accounting department.

Yes, Lean principles don’t only apply to manufacturing. Just as you can remove inefficiencies from an assembly line, you can apply the same logic to tax return preparation, month-end close processes, or any other repetitive business function. After all, tax return preparation shares many characteristics with a production line. There are multiple steps, inputs, reviews, and quality control checks—all of which, if streamlined, can yield significant time and cost savings.

Kaizen in Action: Streamlining the SALT Process

A few years ago, I had the chance to participate in a Kaizen effort in a large tax department. This initiative was aimed at breaking down and improving the process for preparing State and Local Tax (SALT) returns.

The team analyzed everything—from the raw data coming out of our ERP system to the final submission of the tax return. We left no detail untouched. How long did each return take to prepare? How many steps were involved? What about the bottlenecks? We examined the process for preparing hundreds of SALT returns, sparing no inefficiency.

It wasn’t always a pretty discussion. Some of the executives started asking tough questions: Why were there so many repetitive steps? Why hadn’t these inefficiencies been addressed sooner? I could see my boss’s face turning red with embarrassment, but the process review was crucial. It forced us to confront inefficiencies we had been too busy to notice or too accustomed to accept.

Breaking Down Process Improvement Techniques

Before diving into which of these methods might work for you, let’s clarify some of the key concepts:

• Six Sigma: A data-driven approach focused on reducing variation and defects in processes. The goal is to improve quality and predictability.
• Lean Manufacturing: A philosophy centered on eliminating waste (anything that doesn’t add value) while improving flow and responsiveness to customer demand.
• Kaizen Theory: Rooted in the Japanese philosophy of continuous improvement, Kaizen promotes small, incremental changes that over time lead to significant improvements.
• The Toyota Way: A management approach developed by Toyota, emphasizing respect for people and continuous improvement through a long-term vision.

Applying Lean Techniques to Your Business

In my experience, the key to successfully utilizing these process improvement methodologies is to tailor them to your organization’s unique needs. There’s no one-size-fits-all solution. If your company’s culture and operations are more suited to the data-driven precision of Six Sigma, then that may be your best bet. If flexibility and rapid iteration are more important, Lean or Kaizen might be a better fit.

What’s most important is consistency. Pick a method that aligns with your organizational goals, and apply it consistently over time. Continuous improvement isn’t a one-time project; it’s a mindset that needs to be ingrained in the company culture.