Aligning Lean and Value-based Management (eBook)

Operations and Financial Functions at the System Level

Gerd Kaufmann (Autor)

eBook Download: PDF

2020 | 1st ed. 2020
XXI, 245 Seiten
Springer International Publishing (Verlag)
978-3-030-38467-8 (ISBN)

Infos

This book explores the relationship between and the compatibility of lean management (LM) and value-based management (VBM) approaches at the systems level. It then develops a model to improve LM and VBM professional practice by fostering a shared understanding of the value creation process within a lean system, and in doing so helps to remove existing barriers. The results promote future fruitful alliances between a company's operational and financial communities, enhancing the benefits to the enterprise and its stakeholders. The book is of primary interest to LM and VBM professionals and researchers.

Gerd Kaufmann is the CFO of a globally operating, mid-cap mechanical engineering company. After studying business administration at the University of Cologne, he worked as an interim manager (CFO/CEO) in the private equity sector. Subsequently, he worked as a management consultant for Porsche Consulting, one of the foremost German management consultancies in the field of lean management, and for a Big Four management consultancy, focusing on value creation in the automotive and mechanical engineering industry.

Inhalt

Abstract 7
Acknowledgements 9
Contents 10
Abbreviations 13
List of Figures 14
List of Tables 16
Chapter 1: Introducing the Study of Lean and Value-Based Management 19
1.1 Introduction 19
1.2 Verifying the Lack of Knowledge 22
1.2.1 Search Strings and Strategy 22
1.2.2 Types of Sources 23
1.2.3 Databases 23
1.2.4 Search Period 23
1.2.5 Findings 23
1.3 Research Aim, Objectives and Research Questions 26
1.4 Scope and Related Limitations of the Thesis 27
1.5 Structure of the Thesis 28
Chapter 2: Theoretical Background of Lean and Value-Based Management 31
2.1 Introduction 31
2.2 Eliminating Waste: The Concept of Lean Management 32
2.2.1 History and Development of Lean Management 32
2.2.2 Defining Lean Management 33
2.2.3 Lean Management Frameworks 35
2.2.3.1 Lean Business Principles 35
Philosophy 36
Process 37
People 38
Problem Solving 38
2.2.3.2 The Lean Strategy Management and Control System 39
Pre-planning Analysis 42
Mission Statement 42
Value Statements 43
Vision Statement 43
Long- and Medium-Term Plans and Goals 44
Annual Plan 44
Policy Deployment 45
Integration into Daily Management 46
Reviews 47
2.3 Creating Shareholder Value: The Concept of Value-Based Management 48
2.3.1 History and Development of Value-Based Management 48
2.3.2 Defining Value-Based Management 51
2.3.3 The Value-Based Management Framework 53
2.4 Defining the Terms ``Value´´ and ``Value Driver´´ 54
2.4.1 Definition of Value 55
2.4.2 Definition of Value Drivers 57
2.5 Assessing Lean Management from a Value-Based Management Perspective 59
2.5.1 Choosing Specific Internal Objectives 60
2.5.2 Selecting Strategies and Organisational Designs 61
2.5.2.1 Selecting Strategies 61
2.5.2.2 Selecting Organisational Designs 62
2.5.3 Identifying the Value Drivers 64
2.5.4 Developing Action Plans, Selecting Performance Measures, Setting Targets 69
2.5.4.1 Developing Action Plans 71
2.5.4.2 Selecting Performance Measures 71
2.5.4.3 Setting Targets 72
2.5.5 Evaluating Success and Assessing Internal Objectives, Strategies and Plans 73
2.6 Summary and Research Questions to Address the Final Objective 74
Chapter 3: Methodology to Align Lean and Value-Based Management 77
3.1 Introduction 77
3.2 The Research Master Plan and Conceptual Framework 77
3.3 Methodological Framework 80
3.3.1 Research Purpose 80
3.3.2 Research Philosophy 81
3.3.3 Research Approach 86
3.3.4 Methodological Choice 87
3.3.5 Research Strategy 88
3.3.5.1 Research Strategy to Create a Conceptual Model 89
3.3.5.2 Research Strategy to Validate and Refine the Conceptual Model 89
Choice of Qualitative Survey Research Strategy 89
Rationale to Refuse Other Strategies 90
Action Research 90
Case Study 90
Ethnography 91
Grounded Theory 91
3.3.6 Time Horizon 92
3.4 Limitations 92
3.5 Summary 93
Chapter 4: Examining Prior Research of Lean Management 95
4.1 Introduction 95
4.2 Research Strategy to Create a Conceptual Model 95
4.2.1 Formulating the Research Questions 96
4.2.2 Searching for Literature 97
4.2.2.1 Search Strings and Strategy 97
4.2.2.2 Types of Sources 98
4.2.2.3 Databases 98
4.2.2.4 Search Period 98
4.2.3 Screening and Evaluating Literature 98
4.2.4 Extracting and Analysing Data 100
4.2.5 Limitations 100
4.3 Findings from Secondary Data 101
4.3.1 Identification and Prioritisation of Relevant Stakeholders 101
4.3.1.1 Identification of Relevant Stakeholders 101
4.3.1.2 Prioritisation of Relevant Stakeholders 102
4.3.2 Identifying Stakeholders´ Requirements and Contributions 103
4.3.2.1 Shareholders´ Requirements and Contributions 104
Shareholders´ Requirements 104
Shareholders´ Contributions 104
4.3.2.2 Customers´ Requirements and Contributions 105
Customers´ Requirements 105
Customers´ Contributions 105
4.3.2.3 Employees´ Requirements and Contributions 105
Employees´ Requirements 105
Employees´ Contributions 107
4.3.2.4 Senior Management´s Requirements and Contributions 109
Senior Management´s Requirements 109
Senior Management´s Contributions 109
4.3.2.5 Suppliers´ Requirements and Contributions 110
Suppliers´ Requirements 110
Suppliers´ Contributions 111
4.3.2.6 Society´s Requirements and Contributions 112
Society´s Requirements 112
Society´s Contributions 113
4.3.3 Revisiting the Measures 114
4.3.3.1 Measures that Fit Well with Fit Stakeholders´ Requirements or Contributions 115
4.3.3.2 Measures that Do Not Fit with Stakeholders´ Requirement or Contribution 116
4.3.3.3 Stakeholders´ Requirements or Contributions Without Sufficient Measures 116
4.3.4 Stakeholders´ Relationships 117
4.3.4.1 Shareholders´ Relationships with Other Stakeholders 117
4.3.4.2 Customers´ Relationships with Other Stakeholders 119
4.3.4.3 Employees´ Relationships with Other Stakeholders 119
4.3.4.4 Senior Management´s Relationships with Other Stakeholders 120
4.3.4.5 Suppliers´ Relationships with Other Stakeholders 120
4.3.4.6 Society´s Relationships with Other Stakeholders 120
4.4 Updating the Framework: The Conceptual Value Driver Model 121
4.5 Summary 123
Chapter 5: Lean Value Creation Process: Findings from Primary Data 124
5.1 Introduction 124
5.2 Research Strategy to Validate and Refine the Conceptual Model 125
5.2.1 Formulating the Research Questions 125
5.2.2 Data Collection 126
5.2.2.1 Sampling Strategy 126
5.2.2.2 Sampling Criteria 126
5.2.2.3 Saturation Criteria 127
5.2.2.4 Samples 128
5.2.3 Data Analysis 130
5.2.3.1 Description of Collected Data 130
5.2.3.2 Coding Process 131
5.2.3.3 Validating Saturation 134
5.2.4 Ethical Considerations 135
5.2.5 Limitations 136
5.3 Findings 137
5.3.1 Identification and Prioritisation of Relevant Stakeholders 137
5.3.1.1 Identification of Relevant Stakeholders 137
5.3.1.2 Prioritisation of Relevant Stakeholders 138
5.3.2 Identifying Stakeholders´ Requirements and Contributions 139
5.3.2.1 Shareholders´ Requirements and Contributions 139
Shareholders´ Requirements 139
Long-Term Profit and Growth 140
Social Recognition 141
Corporate Image and Reputation 141
Information and Transparency 141
Innovation 141
Shareholders´ Contributions 142
Capital 142
Financial Contribution 142
Long-Term Orientation 143
Vision and Guidance 143
Social Responsibility and Governance 143
Network and Know-How 144
Summarising Shareholders´ Requirements and Contributions 144
5.3.2.2 Customers´ Requirements and Contributions 144
Customers´ Requirements 144
Primary Product or Service 144
Secondary Services 145
Corporate Intangibles 146
Customers´ Contributions 148
Recurring Revenues 148
Information and Knowledge 148
Multiplier Role 149
Summarising Customers´ Requirements and Contributions 149
5.3.2.3 Employees´ Requirements and Contributions 150
Employees´ Requirements 150
Compensation Package 150
Job Content and Development 151
Work Environment 152
Company Perception 153
Employees´ Contributions 153
Process and Productivity Improvement 154
Loyalty and Reliability 155
Corporate Image and Reputation 155
Summarising Employees´ Requirements and Contributions 156
5.3.2.4 Work Councils´ Requirements and Contributions 156
Work Councils´ Requirements 156
Employee Satisfaction 157
Involvement and Cooperation 157
Retention of Power 157
Recognition 158
Work Councils´ Contributions 158
Regulatory Instance 158
Commitment 159
Support 159
Information and Communication 159
Summarising Work Councils´ Requirements and Contributions 160
5.3.2.5 Senior Management´s Requirements and Contributions 160
Senior Management´s Requirements 160
Compensation Package 160
Job Content and Development 161
Work Environment 162
Company Perception 163
Senior Management´s Contributions 163
Vision, Strategy and General Guidance 164
Commitment and Role Model Function 164
Support 165
Specific, Measurable, Assignable, Realistic, and Time-Related Target Setting 166
Information and Communication 166
Summarising Senior Management´s Requirements and Contributions 167
5.3.2.6 Middle Management´s Requirements and Contributions 167
Middle Management´s Requirements 167
Compensation Package 167
Job Content and Development 167
Work Environment 169
Company Perception 170
Middle Management´s Contributions 170
Implement Strategy on Operational Level 170
Commitment and Role Model Function 171
Support 172
Specific, Measurable, Assignable, Realistic, and Time-Related Target Setting 172
Information and Communication 172
Summarising Middle Management´s Requirements and Contributions 173
5.3.2.7 Lower Management´s Requirements and Contributions 173
Lower Management´s Requirements 173
Compensation Package 173
Job Content and Development 173
Work Environment 175
Company Perception 175
Lower Management´s Contributions 175
Implement Strategy on Tactical Level 176
Commitment and Role Model Function 176
Support 176
Specific, Measurable, Assignable, Realistic, and Time-Related Target Setting 176
Information and Communication 176
Process and Productivity Improvement 177
Summarising Lower Management´s Requirements and Contributions 177
5.3.2.8 Suppliers´ Requirements and Contributions 177
Suppliers´ Requirements 177
Cooperative Partnership 178
Profitable Customer Relationship 179
Suppliers´ Contributions 180
Primary Product or Service 180
Secondary Services 181
Corporate Intangibles 181
Cooperative Partnership 182
Summarising Suppliers´ Requirements and Contributions 183
5.3.2.9 Society´s Requirements and Contributions 184
Society´s Requirements 184
Labour Conditions 184
Environmental Performance 185
Financial Contribution 186
Long-Term Job Opportunities 186
Corporate Image and Reputation 187
Innovation 187
Society´s Contributions 187
Legal Framework 188
Qualified Labour Force 188
Infrastructure 189
Public Services 189
Research Funding 189
Summarising Society´s Requirements and Contributions 189
5.3.3 Choice of Management Measures 190
5.3.3.1 Management Requirement Measures 190
5.3.3.2 Management Contribution Measures 192
5.3.4 Stakeholders´ Relationships 193
5.3.4.1 Shareholders´ Relationships 194
Lean Enterprise 194
Senior Management 195
Society 195
5.3.4.2 Customers´ Relationships 196
Society 196
5.3.4.3 Employees´ Relationships 197
Work Council 197
Senior Management 197
Lower Management 198
Society 198
5.3.4.4 Work Councils´ Relationships 198
Senior Management 199
Middle Management 199
Lower Management 199
Society 199
5.3.4.5 Senior Management´s Relationships 200
Middle Management 200
Lower Management 200
Society 201
5.3.4.6 Middle Management´s Relationships 201
Lower Management 201
5.3.4.7 Lower Management´s Relationships 201
Lean Enterprise 201
5.3.4.8 Suppliers´ Relationships 202
Lean Enterprise 202
5.3.4.9 Society´s Relationships 202
Lean Enterprise 202
5.4 The Revised Value Driver Model 203
5.5 Summary 205
Chapter 6: Discussion of the Alignment of Lean and Value-Based Management 206
6.1 Introduction 206
6.2 Overall Achievement and Contribution of the Study 207
6.3 Reviewing the Development of the Value Driver Model 208
6.4 Is the Value Driver Model ``Lean Specific´´? 210
6.5 How Does the Value Driver Model Advance Theory? 211
6.6 How Does the Value Driver Model Advance Professional Practice? 213
6.7 Discussion of Additional Findings 214
6.7.1 Extending the View Towards Shareholders 214
6.7.2 Extending the View Towards Management 215
6.7.2.1 The Revealed Importance of Middle Management 215
6.7.2.2 Considering the Differences of Management´s Requirements 215
6.7.2.3 Measuring Management´s Requirements and Contributions 216
6.8 Assessing the Quality of the Research 217
6.8.1 Prolonged Engagement 218
6.8.2 Thick Description 218
6.8.3 Triangulation 218
6.8.4 Development of a Coding System 219
6.8.5 Clarifying Researcher Bias 219
6.8.6 Negative Case Analysis 219
6.8.7 Peer Review and Debriefing 220
6.9 Research Limitations 221
6.10 Avenues for Future Research 222
Appendix 223
Literature Review to Justify the Research Gap 224
Participant Information Sheet 229
Consent Form 233
Interview Protocol 235
Coding Scheme 236
References 243

Produkt-Details

• Erscheint lt. Verlag: 6.3.2020
• Reihe/Serie: Contributions to Management Science
• Reihe/Serie: Contributions to Management Science
• Zusatzinfo: XXI, 245 p. 33 illus., 32 illus. in color.
• Sprache: englisch
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Unternehmensführung / Management
• Schlagworte: Corporate Social Resposibility • Holistic value creation models • Management in the manufacturing industry • Stakeholder Value • sustainability • Value driver model
• ISBN-10: 3-030-38467-5 / 3030384675
• ISBN-13: 978-3-030-38467-8 / 9783030384678