5 ways to reduce waste and build lean business processes

Your new employee onboarding takes 3 weeks.

Three. Weeks.

Meanwhile, Sarah from accounting is still chasing down laptop approvals from IT. Mark in sales doesn’t know if his expense report from last month got processed.

And that “streamlined” purchase order system? It has got 7 approval steps for a $50 software subscription.

This isn’t lean. It’s chaos wearing a process costume.

Here’s what nobody tells you about building lean business processes: You can’t optimize what doesn’t exist. And right now? Most companies don’t have processes - they have habits.

Undocumented, inconsistent habits that change based on who is doing them and what mood they are in that Tuesday.

The foundation nobody talks about: standardized, trackable processes

Let me paint you a picture.

Last week, I watched a VP spend 2 hours in a meeting discussing “process improvements.” The irony? Nobody in that room could tell you what the current process actually was.

Different teams were doing it differently. New hires were making it up as they went. Veterans had their own “shortcuts” that bypassed critical steps.

You know what’s worse than a bad process? No process at all. Simple as that.

Standardization isn’t sexy. But it’s the difference between actually improving and just talking about improvement. Here’s why:

• You can’t measure chaos. If everyone’s doing it differently, your metrics are meaningless.
• You can’t improve randomness. How do you make something 10% better when it changes every time?
• You can’t scale confusion. What works for 5 people falls apart at 50.

The first step to lean isn’t eliminating waste. It’s knowing what you’re actually doing. Every time. Consistently.

Look familiar? That’s every company that thinks documentation equals execution. Spoiler: it doesn’t.

Ready to stop managing chaos and start eliminating waste systematically? Here’s how Tallyfy turns lean principles into daily practice.

Why traditional lean fails - and what actually works

Traditional lean came from the Toyota Production System (TPS) - developed by Taiichi Ohno at Toyota’s manufacturing floor in the 1940s. Physical products. Assembly lines. Predictable outputs.

The genius of TPS was identifying seven fundamental wastes that plague every business.

Your business isn’t a factory floor.

You’re dealing with knowledge work. Service delivery.

Human decisions. Digital workflows. The old lean playbook - with its focus on inventory and motion waste - misses the biggest waste in modern business: waiting for information.

Think about your last week. How much time did you spend:

• Asking for status updates?
• Searching for the latest version of something?
• Wondering if someone saw your message?
• Redoing work because requirements changed?

McKinsey found that knowledge workers spend 28% of their week just managing email and status updates. That is 11 hours. Gone. Every week.

The 8 modern wastes that actually matter

Forget the textbook definitions. Here is what waste looks like in modern knowledge work:

D - Defects: That contract that went out with the wrong pricing. Again.

O - Overproduction: Creating 47-slide presentations nobody reads.

W - Waiting: 3 days for approval on a 5-minute decision.

N - Non-utilized talent: Your senior developer doing data entry.

T - Transportation: Moving data between 6 different systems manually.

I - Inventory: 200 “draft” documents nobody knows are current.

M - Motion: Switching between 12 tabs to complete one task.

E - Extra-processing: Getting 5 signatures for a $20 purchase.

Each of these wastes exists because you don’t have real-time visibility into your processes. In our experience working with operations teams, we see this pattern constantly - teams end up managing work about work, not doing actual work. One compliance-focused services team discovered they had 65 employees doing work that could be done by 15 - because “bloated operations with redundant work” had accumulated over years of undocumented processes. After standardizing their SOPs, they saved $1 million in Year 1 while quadrupling revenue.

The 1% daily improvement method

Here is something interesting: A manufacturing company in Ohio tried implementing lean six sigma. Spent $200K on consultants. Ran workshops. Built elaborate value stream maps.

Six months later? Back to the old way.

Why?

Because they tried to change everything at once. And humans don’t work that way.

Now, here’s what actually works - and it’s stupidly simple:

Stop trying to revolutionize. Start evolving.

This is the essence of Kaizen - continuous incremental improvement. If you improve a process by just 1% each day, after one year it is 37 times better. Not 37% - thirty-seven TIMES.

That is the math of compound improvement, straight from James Clear’s research.

But here is the catch - you need three things:

1. Real-time feedback (not quarterly reviews)
2. Instant implementation (not committee approval)
3. Visible results (not buried in reports)

The forgetting curve problem

You run a lean training workshop. Everyone is excited. Two weeks later?

Nobody remembers anything.

Hermann Ebbinghaus proved this in 1885 (yes, that long ago). People forget 90% of what they learn within 30 days.

Unless - and this is critical - they use it immediately and repeatedly.

That’s why traditional lean training fails. You can’t workshop your way to lean. You have to build it into the actual work.

Easy feedback loops

Want to know the difference between companies that actually get lean and those that just talk about it?

Feedback loops.

Not annual surveys. Not suggestion boxes. Not monthly meetings.

I am talking about instant, in-the-moment feedback. While the idea is fresh. While the problem is real. While the solution is obvious.

Example: Sarah notices the approval process has an unnecessary step. In most companies, she would:

1. Maybe mention it in a meeting (if she remembers)
2. Someone might write it down (or not)
3. It might get discussed next quarter (probably will not)
4. Nothing changes

In a lean company with proper continuous improvement culture:

1. Sarah flags it in the workflow system
2. The process owner gets notified immediately
3. They test removing the step tomorrow
4. If it works, it is permanent by Friday

The idea doesn’t die in committee. It lives in the process.

Building your first lean process in the real world

Alright, let us get practical. You want to build lean processes. Where do you start?

Not with the most complex process. Not with the most visible one.

Start with the most annoying one.

You know the one. That process everyone complains about. That causes daily frustration. That makes people say “there has to be a better way.”

Step 1: Document reality, not fantasy

Do not document how the process should work. Document how it actually works.

Shadowing works better than workshops here. Watch people actually do the work.

You will discover:

• The workarounds they have created
• The steps they skip
• The approvals they bypass
• The tools they actually use (vs. what they are supposed to use)

This is your baseline. It is probably messier than you thought. Good.

Now you know what you are really dealing with.

Step 2: Map your value stream and find where value dies

This is where Value Stream Mapping (VSM) becomes your secret weapon. VSM is the lean tool that visually shows every step in your process - separating value-added activities from waste.

In manufacturing, the constraint might be machine capacity. In knowledge work? It is almost always waiting.

Track every “wait state” in your process:

• Waiting for approval
• Waiting for information
• Waiting for someone to be available
• Waiting for access
• Waiting for decisions

Invoice processing commonly takes 5 days in organizations with process waste. Actual work time?

Often just 30-40 minutes. The rest? Waiting.

We have seen this pattern play out with property management teams especially - one group managing 3,500 rental properties found their maintenance and tenancy renewal processes took 75% longer than necessary because “work was scattered across Salesforce, Trello, Airtable, DocuSign, and email.”

The power of VSM? It makes the invisible visible. You can’t fix what you can’t see.

Step 3: Eliminate before you automate

This is where most companies mess up. They automate waste.

Before you automate anything, ask:

• Can we eliminate this step entirely?
• Can we combine it with another step?
• Can we do it in parallel instead of sequence?
• Can we pre-approve instead of review?

That 7-step approval process? Maybe 2 steps are actually necessary. The other 5 are “CYA insurance” that nobody needs.

Step 3.5: Process one thing at a time instead of batching

Here’s a counterintuitive truth that trips up most operations teams: batching work feels efficient but usually isn’t. You think “I’ll process all 20 invoices at once” saves time. What actually happens? Errors compound across the batch, you lose context switching between items, and if something’s wrong with item #3, you don’t find out until you’ve already messed up items 4 through 20.

Processing work in smaller chunks - ideally one piece at a time - sounds slower but catches problems immediately. When something breaks, you fix it for one item, not twenty. In our experience with financial services teams especially, the ones who stopped batching approvals and started processing them as they arrived cut their error rates dramatically. They also stopped the “Friday afternoon panic” when everyone realized a batch that sat for three days had issues. The Toyota folks called this approach working in flow - matching the pace of incoming work rather than letting it pile up. In knowledge work, that means handling requests when they come in rather than creating artificial processing windows.

Step 4: Build in continuous improvement

This is the part everyone skips. And it is why their lean initiatives die.

Every process needs built-in improvement mechanisms:

• Clear ownership (someone who can actually change it)
• Feedback triggers (easy ways to suggest improvements)
• Testing protocols (how to try changes safely)
• Success metrics (knowing if it is actually better)

Without these, your process will slowly decay back to chaos.

The best companies use structured improvement methodologies like DMAIC (Define, Measure, Analyze, Improve, Control) to ensure changes stick.

Technology, tools, and ROI

“We need better tools!”

No. You need better processes. Tools just make bad processes fail faster.

That said, the right technology can supercharge lean processes. But only if you use it correctly.

The lean tools that actually matter

Before we talk software, let us talk about proven lean process improvement tools:

• Kanban Boards: Visual workflow management using cards and columns. Work only moves forward when there is capacity (pull system, not push).
• 5S Methodology: Sort, Set in order, Shine, Standardize, Sustain - creates organized, efficient workspaces.
• SMED (Single-Minute Exchange of Die): Reducing changeover times to under 10 minutes.
• Takt Time: Synchronizing production pace with customer demand.
• Andon Systems: Visual alerts when problems occur - anyone can “stop the line.”

What digital tools do not work

• Project management tools (they track tasks, not processes)
• Spreadsheets (they are snapshots, not workflows)
• Email (it is communication, not coordination)
• Shared drives (they are graveyards, not guidance)

What actually works

You need workflow automation that:

1. Shows the process in real-time - Not what should happen, but what is happening
2. Guides people through it - No training required, just follow the steps
3. Captures feedback instantly - Problems get flagged immediately
4. Measures everything - Time, bottlenecks, completion rates
5. Adapts quickly - Changes implement in minutes, not months

This is not about fancy features. It is about making the right thing the easy thing.

Example Procedure

Employee Onboarding

1HR - Set up payroll and send welcome email

2IT - Order equipment and set up workstation

3Office Manager - Prepare physical workspace

4IT - Create accounts and system access

5HR - Welcome meeting and company orientation

+3 more steps

View template

Example Procedure

Daily/Weekly Tasks

1Select your department function

2Daily tasks - Office Admin

3Daily tasks - Accounting

4Daily tasks - Marketing (Social Media)

5Daily tasks - HR

+4 more steps

View template

Example Procedure

Invoicing Client(s)

1Accounts: Invoice creation

2Accounts: Invoice delivery

3Gather billable items

4Create the invoice

5Review and approve

+2 more steps

View template

The ROI nobody calculates correctly

Most lean ROI calculations are fantasy fiction.

“We will save 20% on efficiency!”

Based on what? Theoretical time savings that never materialize?

Here is how to calculate real lean ROI:

The visible costs:

• Time spent on status updates (2 hours/day per person)
• Rework from errors (15% of all work)
• Delayed decisions (3 days average)
• Lost knowledge from turnover ($50K per departed employee)

The hidden costs:

• Opportunity cost of slow execution
• Customer frustration from inconsistency
• Employee burnout from frustration
• Innovation killed by bureaucracy

Add those up for your organization. The number will shock you.

One mid-size company discovered they were losing $3.2M annually just from waiting-related waste. That is not including errors, rework, or lost opportunities.

Is waste acceptable?

Five practical ways to start today

Enough theory. Here is what you can actually do using proven continuous improvement tools:

1. Pick one process and track it

Just one. Something that happens daily. Track:

• How long it takes (total time)
• How much actual work happens (active time)
• Where it gets stuck (wait time)
• How often it fails (error rate)

Do this for one week. The data will tell you everything.

2. Implement stop the line authority

Toyota’s famous Andon system. Anyone can stop production if they spot a problem.

Your version: Anyone can flag a process problem and it must be addressed within 24 hours. Not fixed - addressed. Maybe the fix takes longer, but the acknowledgment is immediate.

This does two things:

• Shows you respect frontline insights
• Catches problems before they compound

This is fundamental to continuous process improvement - problems surface immediately, not in quarterly reviews.

3. Create standard work that people actually follow

Standard work is not a 50-page manual. It is a simple checklist that:

• Lives where the work happens
• Updates based on feedback
• Takes less than 30 seconds to reference
• Actually reflects reality

If people are not following your standard work, it is not standard - it is fiction.

4. Institute daily improvement huddles

Not status meetings. Improvement huddles. 5 minutes. Every day.

Three questions:

1. What problem did we hit yesterday?
2. What is one thing we can try today?
3. What worked that we should keep?

No presentations. No preparation. Just rapid problem-solving.

5. Measure one thing that matters

Not 50 KPIs. One.

For most processes, it is cycle time - how long from start to finish. That is it.

When cycle time drops, everything else improves:

• Quality (less time for errors to hide)
• Cost (less resource consumption)
• Satisfaction (faster results)

Track this one metric obsessively. Display it publicly. Celebrate improvements.

Why most companies never get lean

Let us be honest about why most lean initiatives fail:

The real reasons lean fails

1. They treat it as a project, not a practice - Lean is not something you finish. It is something you become.

2. They ignore the human element - Processes do not improve themselves. People improve processes. If your people are not engaged, nothing changes.

3. They lack real-time visibility - You can not improve what you can not see. And annual reports do not count as visibility.

4. They fear standardization - “But we are different! We are creative! We need flexibility!” No. You need consistency first, creativity second.

5. They automate too early - Automating chaos gives you automated chaos. Fix the process, then automate.

The companies that actually succeed

The companies that actually achieve lean share three characteristics:

They start small. One process. One team. One win. Then they scale.

They make it visible. Everyone can see the process, the problems, and the improvements. Transparency drives accountability.

They never stop. Continuous improvement means continuous. Not “when we have time.” Not “next quarter.” Every. Single. Day.

Your lean reality check

Here is a test. Can you answer these questions:

• How long does your most common process actually take?
• Where does it get stuck most often?
• Who owns improving it?
• When was it last improved?
• How would someone suggest an improvement right now?

If you can’t answer these, you’re not ready for lean. You’re still in chaos.

And that is okay. Everyone starts there. The question is: what are you going to do about it?

The path forward

Building lean processes is not about following Toyota’s playbook from 1950. It is about creating a system that embraces modern business process management principles:

1. Makes work visible - Everyone knows what is happening
2. Captures problems instantly - Issues surface immediately
3. Tests improvements rapidly - Changes happen in days, not months
4. Measures what matters - Real metrics, not vanity numbers
5. Engages everyone - From CEO to intern, everyone improves

This is not easy. But neither is wasting $37,000 per employee every year on inefficiency.

The choice is yours: Keep fighting fires and chasing status updates. Or build processes that actually work.

Start with one process. Make it visible.

Make it trackable. Make it better. Tomorrow, make it 1% better again.

In a year? You will not recognize it. And that is the point.

Frequently Asked Questions

What are the five principles of lean process improvement?

The five core principles are: Define Value (what customers actually pay for), Map Value Stream (document all steps), Create Flow (eliminate interruptions), Establish Pull (produce based on demand), and Pursue Perfection (continuous improvement).

But here is what they do not tell you - in knowledge work, “value” is not always obvious, “flow” gets interrupted by meetings, and “pull” means managing human capacity, not inventory.

Focus on making work visible first, then apply these principles.

What is the difference between Lean and Six Sigma?

Lean focuses on speed and waste elimination - making processes faster. Six Sigma focuses on reducing variation and defects - making processes more consistent.

Lean asks “why does this take so long?” Six Sigma asks “why does this fail?” In practice, you need both.

Start with Lean to eliminate obvious waste, then use Six Sigma to fine-tune quality. Most companies try to do both simultaneously and achieve neither.

How do you implement Lean when employees resist change?

Stop calling it “change.” Start calling it “fixing annoying stuff.” Seriously.

Nobody resists making their job easier. They resist corporate initiatives that make their job harder.

Start with the process everyone hates. Fix it with the people who do it. Make their day better.

Resistance disappears when people see you are actually helping, not just “optimizing.”

Can Lean work for service businesses or just manufacturing?

Lean actually works better in service businesses. Why?

Because service waste is more expensive. A defective widget costs materials. A defective service interaction costs a customer.

The principles translate directly: waiting becomes response time, inventory becomes backlog, transportation becomes handoffs.

The biggest difference? In services, your constraint is usually human attention, not machine capacity.

What is the first step to creating a Lean process?

Document what actually happens. Not what the manual says. Not what should happen. What really happens.

Shadow someone doing the work for a day. You will discover the process you think you have is not the process you actually have.

Most companies skip this and try to improve a fantasy process that does not exist. That is why they fail.

How long does it take to see results from Lean processes?

If you are doing it right? Days, not months. The first waste you eliminate should show results immediately.

If you are not seeing improvement in the first week, you are either: (1) fixing the wrong problem, (2) measuring the wrong thing, or (3) implementing too slowly.

Start with something that happens daily and annoys everyone. Fix that. Results are immediate.

What tools do you need for Lean process management?

You need three things: Something to document the process (not Word docs nobody reads), something to track the work (not spreadsheets that go stale), and something to capture feedback (not suggestion boxes nobody checks).

This could be as simple as a whiteboard and sticky notes, or as sophisticated as workflow automation software.

The tool does not matter. Using it consistently does.

How do you maintain Lean processes once they are built?

Build improvement into the process itself. Every process needs: an owner who can change it, a feedback mechanism that is instant, metrics that matter, and regular reviews that actually result in changes.

Without these four elements, your lean process will decay back to chaos within 6 months. Guaranteed.