The microfoundations of lean leadership: Monozukuri, Hitozukuri, Kotozukuri

Abstract

This paper sets out to investigate the microfoundations of lean leadership. To do so, we explore the Japanese philosophical concepts of Monozukuri, Hitozukuri, and Kotozukuri, representing that passion and craftsmanship for making things, developing people, and making things happen. The paper delves into how to foster lean leadership as a pivotal success factor in adopting lean thinking and practices in a manufacturing firm. By addressing the research gap concerning leadership traits contributing to successful lean deployment, the study explores the microfoundations of lean leadership. The paper is based on a single, in-depth longitudinal case study that offers new insights into the microfoundations underpinning lean leadership at VELUX, a Danish rooftop window manufacturer. The research contributes valuable evidence to the existing lean leadership research discourse, where lean should be seen as a human learning system, illustrating how lean leaders can cultivate lean and how the Japanese philosophical concepts of Monozukuri, Hitozukuri, and Kotozukuri resonate in a Western context.

Keywords:

• Lean
• leadership
• learning
• Monozukuri
• Hitozukuri
• Kotozukuri
• microfoundations

1. Introduction

Inspired by the excellence and profitability of the Toyota Production Systems (TPS), the effectiveness and superiority of lean have been confirmed by numerous studies (Negrão et al., 2016). However, most organisations struggle to achieve the high and sustainable performance levels the lean literature promises (Magnani et al., 2019).

On a high level, most unsuccessful and unsustainable lean implementations are often ascribed to a sole focus on ‘hard’ lean practices and disregard the perspective of lean as a social-technical system (Bortolotti et al., 2015). The current body of literature exploring obstacles to the adoption of lean practices attributes these challenges to ‘soft’ barriers, encompassing factors such as organisational culture, communication dynamics, leadership effectiveness, employee skills, and attitudes toward change (Bortolotti et al., 2015; Jadhav et al., 2014; Zhang et al., 2017). Understanding and addressing these soft barriers is essential for overcoming challenges and fostering a conducive environment for the effective adoption of lean.

Research investigating the complementarity between the ‘soft’ and ‘hard’ lean practices as a lean capability is growing (Magnani et al., 2019). One contemporary stream of lean research perceives lean as a learning system encompassing a learning-to-learn capability that can enable the complementarity between ‘soft’ and ‘hard’ lean routines and capabilities (e.g. Hines et al., 2022; Powell & Coughlan, 2020; Saabye, 2023; Saabye & Powell, 2022). However, guidance for implementing lean practices that considers human aspects is still scarce (Hines et al., 2022; Magnani et al., 2019).

Lean leadership has been highlighted in the extant literature as a critical success factor in adopting lean and its underlying learning system (Aij & Teunissen, 2017; Laureani & Antony, 2019; Saabye et al., 2022). A research gap still exists within the extant research into leadership traits that contribute to a successful deployment of lean (Laureani & Antony, 2019). While these studies highlight essential skills, principles, and behaviours for effective lean leadership aiming to foster a lean transformation or adopt a lean production or service system, they are prescriptive in nature, focusing more on what lean leadership is and not how it is operationalised. The microfoundational elements essential for sustainable lean implementation and the underlying learning system are under-described.

To further distil how leaders can institute lean and its underlying learning system fostering the complementarity between ‘soft’ and ‘hard’ lean routines and capabilities, this paper adopts the Japanese philosophical terms ingrained within TPS of Monozukuri, Hitozukuri and Kotozukuri. Monozukuri means ‘craftsmanship’ or ‘making value-adding things’ and constitutes the passion for innovating and doing things well (Liker & Convis, 2011). Hitozukuri means ‘making people’ and is the passion for educating people through lifelong learning (Saito et al., 2013). Kotozukuri means ‘making things happen’ and is the passion for fostering value-creating actions and changes (Ljungblom & Lennerfors, 2021). Monozukuri, Hitozukuri and Kotozukuri can be considered the microfoundations of lean leadership for fostering lean and its underlying learning system emerging from the theoretical concept regarding microfoundations of routines and capabilities found in the management literature (Felin et al., 2012).

To investigate the microfoundations of lean leadership for adopting lean and its underlying learning system through the lens of Monozukuri, Hitozukuri and Kotozukuri, this paper presents a case from VELUX, a Danish roof window manufacturer of how a new production manager improved the panes production performance.

By exploring the RQ of ‘How do organisations adopt lean leadership?’, this paper contributes with new insights and evidence to the extant lean research stream on what constitutes the microfoundations of lean leadership and how Monozukuri, Hitozukuri, Kotozukuri translate into a Western context.

The paper is organised as follows. First, we review the existing literature on lean as a learning system, lean leadership, microfoundations and their relationships to Monozukuri, Hitozukuri and Kotozukuri. Section 3 presents the research design, followed by the findings in Section 4, which is discussed in Section 5. The paper’s conclusion, including research limitations and future opportunities, is to be found in section 6.

2. Literature review

2.1. Lean as a learning system

The concept of lean originated from the Toyota Production System (TPS) in the late 1980s and has been used in Western industries to reduce waste, improve lead time and increase efficiency and value (Liker, 2021). Despite positive accounts of significant improvements, there have been critiques on the incomplete approach, lack of sustainability, focus on operational rather than the strategic level, ambiguity in meaning, and neglect of human and organisational development perspectives (Hines et al., 2022). These critiques have led to understanding lean as a lifelong learning journey of instituting a lean learning system, which involves developing people and creating a problem-solving culture (Ballé et al., 2017). Lean tools are techniques to create the conditions for experiential learning, and the lean approach turns management upside down by turning the chain of command into a chain of help (Ballé et al., 2019a). Lean is therefore proposed as a culture of improvement that ensures such improvements are planned and aligned, behaviours are exemplified, systems are checked, and people are coached and developed (Hines et al., 2022).

2.2. Lean leadership

The impact of lean leadership in organisations is often underestimated, as Santos et al. (2023) highlight, with an undue focus on tools and techniques. This overemphasis on tool application is cited as a frequent cause of programme failures in various organisational contexts (Aij & Teunissen, 2017; Laureani & Antony, 2019). What tends to be overlooked is the cultivation of a culture centred on continuous improvement and behavioural shifts, which are crucial for driving lean transformation (Hines et al., 2020).

Seidel et al. (2017) identified 16 vital lean leadership competencies essential for implementing lean production systems through a comprehensive examination of literature and expert insights. These competencies encompass collaborative problem-solving, adherence to the PDCA principle, showcasing continuous improvement, and overcoming obstacles in the lean production journey. They also involve optimising operations, prioritising value flow over isolated processes, and stabilising operations to minimise waste and variability. Lean leaders must view production holistically, considering it a system of interconnected principles and practices. Effective communication, discerning value for internal and external clients, and providing unbiased information are also pivotal. Furthermore, lean leaders must prioritise group interests, establish growth-oriented guidelines, and foster continuous personal and professional development. Ethical principles guide their actions, ensuring respect for the community, environment, and worker safety through promoting a people-centric lean culture.

Similar competencies are echoed in various other papers. Netland et al. (2019) suggest customising lean leadership practices for different managerial levels, detailing six essential leadership practices implemented at front-line, middle, and top management tiers. These practices encompass go-and-see, daily layered accountability, structured problem-solving, continuous improvement, coaching, and strategy deployment.

Spear (2004) underscores four principles for leaders: direct observation at the gemba, proposing changes as structured experiments, promoting frequent experimentation for continuous learning, and prioritising coaching over fixing. Liker and Convis (2011) present a lean leadership model featuring five True North values and a developmental process, emphasising self-development, coaching, daily kaizen, and aligning goals. Dombrowski and Mielke (2013) introduce a comprehensive lean leadership model applicable across industries, emphasising an improvement culture, self-development, qualifications, ‘gemba,’ and ‘hoshin kanri.’ These components underscore the significance of teams, particularly front-line employees, in driving engagement and continuous process enhancement.

Laureani and Antony (2017) identify 10 lean leadership characteristics fostering success in lean deployments, including visibility, communication, inspiration, consistency, targeting, leading by example, flexibility, perceiving lean as a philosophy, ensuring clearly defined roles and responsibilities, and building trust. Emerging from five case studies, Poksinska et al. (2013) find that lean leadership mirrors transformational and servant leadership in self-managed teams, emphasising employee development, collaborative problem-solving, and inverting the traditional hierarchy.

Holmemo et al. (2023) address the constraint in cultivating essential lean leadership skills at individual and organisational levels. They propose enriching traditional lean leadership training by incorporating principles and methodologies from human resource management and organisational development. In this regard, action learning and the notion of leaders acting as action learning facilitators have been identified as critical success factors in lean adoption (Saabye, 2023; Saabye et al., 2023).

Whilst the presented lean leadership theories aspire to facilitate a lean transformation or adopt a lean production or service system, they are prescriptive. These theories often overlook the specific microfoundations crucial for establishing a sustainable implementation of lean and its underlying learning system. While emphasising essential skills, principles, and behaviours for effective lean leadership, these studies lack an explicit exploration of the microfoundations inherent in a lean learning system based on Monozukuri, Hitozukuri, and Kotozukuri.

2.3. Microfoundations

Microfoundational capabilities are the building blocks or individual-level assumptions that form the basis for macro-level theories and models in social sciences such as economics, sociology, and political science. Microfoundations are based on the premise that macro-level phenomena can be explained by the actions and interactions of individual agents (Felin et al., 2012). They refer to its underlying assumptions about individual behaviour and decision-making.

Microfoundational capabilities refer to the foundational skills, abilities, and knowledge necessary for individuals, teams, or organisations to achieve high-performance levels in a particular domain. Microfoundational capabilities can explain the observed patterns of behaviours at a larger scale. They are often considered the building blocks of expertise, allowing individuals and organisations to adapt and innovate in response to changing circumstances (Argote & Ren, 2012). Microfoundational capabilities can include a wide range of skills, such as technical, problem-solving, communication, critical thinking, and leadership skills (Felin et al., 2012). They can also include domain-specific knowledge, such as knowledge of a particular industry, market, tools, or technologies. Developing microfoundational capabilities is often seen as a key driver of organisational success and competitive advantage. It allows individuals and organisations to improve performance and adapt to changing circumstances (Felin et al., 2012).

In the existing lean literature, the adoption of lean practices has been linked to microfoundations as dynamic capabilities (Anand et al., 2009; Gutierrez et al., 2022; Qamar et al., 2021), suggesting that efficiency can be improved with the proper infrastructure (Galeazzo et al., 2017). This infrastructure encompasses various elements, such as standardised improvement methods, participation structures, training programmes, and organisational guidance.

Contrasting Felin et al.’s (2012) clustering of microfoundational capabilities and routines as three core or overarching categories of individuals, processes and interactions, and structures, we find that a lean learning system can also be organised around these categories. In a lean learning system, individuals contribute through their commitment to further developing individual – and organisational capabilities, while processes and interactions involve continuous improvement efforts and feedback loops within structures that encompass organisational arrangements and supporting technologies. This adaptable framework underscores the interconnected roles of individuals (e.g. leaders practising lean leadership), processes, and structures in creating a dynamic and responsive lean learning environment. A lean learning system involves developing employees’ knowledge, skills, and attitudes, creating value for the customer while eliminating waste, variability, and overburden, and developing an organisational structure that supports lean production and continuous improvement (Ballé et al., 2017; Liker, 2021). These three interrelated categories work together to create a culture of continuous learning and improvement within an organisation, leading to improved performance and competitiveness.

2.4. Monozukuri, Hitozukuri and Kotozukuri as the microfoundations of lean leadership

Monozukuri, Hitozukuri, and Kotozukuri are key concepts in lean thinking that can be understood as microfoundations of lean leadership for fostering lean and its underlying learning system (Ljungblom & Lennerfors, 2021).

Monozukuri refers to the art, science, and passion of manufacturing (craftsmanship), which involves creating high-quality products using a lean production system. According to Liker and Convis (2011), Monozukuri is about designing processes that create value for the customer while eliminating waste, variability, and overburden. Monozukuri can be seen as a routine or capability at the organisational level that involves processes and interactions and a structure that supports lean production. It emphasises the need for continuous improvement and waste reduction in production (Tiphtarajan et al., 2019).

Hitozukuri, on the other hand, refers to human development within the organisation, emphasising the importance of investing in employees and their skills to improve the overall efficiency and effectiveness of the production processes. According to Ljungblom and Lennerfors (2021), Hitozukuri is about developing a culture of continuous improvement and empowering employees to contribute to the organisation’s success with the same passion as those invested in Monozukuri. Hitozukuri is a routine or capability involving individuals, processes, and interactions. It focuses on developing the skills and knowledge of employees to improve the quality of work and productivity within the organisation (Tiphtarajan et al., 2019).

Kotozukuri refers to creating a system or structure supporting lean principles (Ljungblom & Lennerfors, 2021). Kotozukuri is about developing capabilities within the organisation to support innovation and adaptability. Ensuring that passion for Monozukuri and Hitozukuri is materialising itself. This includes managerial energy to drive concrete improvements, the development of metrics and performance measures that align with the organisation’s goals and objectives, and the creation of cross-functional teams and other structures that facilitate communication and collaboration (Ljungblom & Lennerfors, 2021). Kotozukuri happens in various ways, including gemba walks by senior executives, hoshin kanri in the boardroom, and middle-management reviews with A3 problem-solving. Gemba is a practice that emphasises the importance of going to the actual location where work is performed to gain a deep understanding of processes, encourage collaboration, and drive continuous improvement within an organisation (Liker, 2021; Spear, 2004). The concept of gemba is integral to the principles of lean leadership and continuous improvement. Organisations can improve their manufacturing processes and outcomes by focusing on these challenges and implementing Kotozukuri in the gemba and the boardroom, increasing efficiency, quality, and customer satisfaction (Liker & Convis, 2011).

Monozukuri, Hitozukuri, and Kotozukuri are crucial in exploring lean leadership competencies. They serve as the microfoundations that underlie the routines and capabilities of lean leadership essential to adopting lean and its underlying learning system. These concepts, rooted in the lean philosophy, contribute to fostering a culture of continuous improvement and effective leadership within an organisation.

3. Methodology

3.1. Case selection

This paper builds on a single, in-depth longitudinal case study (Yin, 2018) at VELUX, the Danish rooftop windows manufacturer. The management team at its primary production site in Denmark faced significant challenges due to the escalating pace of change driven by ambitious growth, sustainability, and digitalisation goals. For instance, the VELUX group’s aim to triple its bottom line and achieve carbon neutrality by 2030 heightened the need for adaptation. The management team was pressured to enhance its capacity to develop production lines that align with new products and methods. Despite having a two-decade history with lean practices, the traditional tool-based approach proved insufficient for the current dynamic environment. Recognising the inadequacy, the management team acknowledged the need to enhance organisational learning capabilities and institute a lean learning system. In response to these challenges, VELUX hired a new production manager with profound knowledge and transformative lean leadership experiences from the automotive industry to oversee the operations at the panes factory. As a result, over 18 months, performance improved from an OEE (Overall equipment effectiveness) from below 30% to over 60% while maintaining high employee satisfaction.

VELUX was chosen as the focal point of this study due to its company’s extensive history with lean practices, spanning two decades, providing an exceptional context for scrutinising the intricacies of lean implementation in response to contemporary challenges. The study presented a unique opportunity to observe how a seasoned lean leader approached transformation, a departure from the conventional methods employed by most production managers in lean implementation scenarios. This distinctive aspect added valuable insights into the nuanced strategies and approaches employed by an experienced lean leader compared to conventional practices. During the research period, the first author was employed as an industrial PhD fellow within VELUX, allowing direct access to data collection.

3.2. Data collection

To ensure data validity and reliability, we performed both passive and participant observation in combination with eight in-depth interviews and a review of performance data and other relevant archival data (Yin, 2018). Rigorous measures were implemented to uphold data validity, including triangulation, cross-verification, and participant feedback validation, enhancing the reliability and credibility of the study’s findings. Data was collected over a period of 18 months. An overview of data collection methods is displayed in Table 1.

Table 1. Data collection.

Collection method	Data source	Data type
Participant observation	• 12 gemba walks within the Panes factory • 25 Problem-solving coaching sessions	• Audio recordings • Field and reflective notes
Semi-structured interviews
(45–60 min)	• 4 x Senior Operators • Maintenance Manager • Shopfloor manager • Quality operator • Quality Assurance Specialist • Interview with Takao Sakai (Author of ‘The Secret Behind the Success of Toyota) about the concepts of Monozukuri, Hitozukuri and Kotozukuri	• Audio recordings • Field and reflective notes
Archival data	• 12 Problem-solving / kaizen presentations • 4 Employee surveys • Operational production line performance data, incl. OEE • Strategy and project reports	• PowerPoint presentations • A3 problem-solving sheets • Excel sheets with performance data • Online survey tool

3.3. Data analysis

The paper applies an explorative and inductive approach (Karlsson, 2016, p. 67) to allow for an open-ended inquiry into the microfoundations of lean leadership within the unique context of VELUX. By not imposing preconceived notions, it enables the emergence of nascent theoretical insights and a nuanced understanding of how Japanese concepts like Monozukuri, Hitozukuri, and Kotozukuri can foster a successful adoption of lean leadership. Data were coded and analysed by applying Braun and Clarke’s (2006) six-step thematic analysis (see Table 2), resulting in Figure 1. As outlined in Table 2, our theoretical framework informed our study, emphasising Monozukuri, Hitozukuri, and Kotozukuri as the microfoundations of lean leadership.

Figure 1. Thematic analysis of the microfoundations of lean leadership.

Table 2. Thematic Analysis Process (Adapted from Braun & Clarke, 2006).

Steps	Procedural comments	Limitations
1. Familiarising yourself with your data: Transcribing data (if necessary), reading and re-reading the data, noting down initial ideas	We first extensively reviewed the literature on lean leadership, Monozukuri, Hitozukuri, and Kotozukuri. Then, we analysed data by entering excerpts and associated metadata as quotes into an Excel sheet and translating them from Danish to English. This aided in data immersion and idea generation for coding.	Limitations in the initial data familiarisation step include subjectivity and bias, the risk of overlooking important data, and potential data quality issues during transcription and translation. We addressed these through rigorous validation and transparent reflexivity.
2. Generating initial codes: Coding interesting features of the data in a systematic fashion across the entire data set, collating data relevant to each code	Using organised Excel data, we conducted open coding by assigning meaningful codes to translated quotes. This iterative process uncovered commonalities and patterns, aligning code phrasing guided by theory. We revisited observational and interview notes, incorporating discarded quotes into our analysis and identifying and labelling initial codes for lean leaders’ significant data points, behaviours, and traits and the influence of the Japanese philosophical concepts within VELUX.	Subjectivity in coding and potential data omissions are challenges. To address them, we refined codes to avoid oversimplification and collaborated for diverse perspectives and data completeness.
3. Searching for themes: Collating codes into potential themes, gathering all data relevant to each potential theme	We applied axial coding by grouping first-order codes into higher-level category candidates and selective coding of theme candidates. We used PowerPoint as a visual representation for sorting codes into categories and themes, revisiting observational and interview notes to include discarded quotes. As in the earlier stage, we revisited our observational and interview notes to retrieve initially excluded quotes, incorporating them into our analysis.	One challenge is that different researchers might interpret themes differently, and we, as a team, might miss important ones. To address this, we collaborated, had our colleagues check our work, and carefully review all our notes to ensure we did not overlook anything significant.
4. Reviewing themes: Checking if the themes work in relation to the coded extracts (Level 1) and the entire data set (Level 2), generating a thematic ‘map’ of the analysis	While reviewing the themes, codes, and excerpts, it became apparent that a few were misidentified; some needed splitting and others could be combined. Through this process, we generated and validated a thematic map to capture the essence of our dataset's meaning and the microfoundations of lean leadership at VELUX.
5. Defining and naming themes: Ongoing analysis to refine the specifics of each theme and the overall story the analysis tells, generating clear definitions and names for each theme	The concepts of Monozukuri, Hitozukuri, and Kotozukuri evolved through multiple iterations as we refined the themes to align with the research question we aimed to address in this paper and our theoretical approach to thematic analysis. The conclusive analysis is illustrated in Figure 1.
6. Producing the report: The final opportunity for analysis. Selection of vivid, compelling extract examples, final analysis of selected extracts, relating back of the analysis to the research question and literature, producing a scholarly report of the analysis	In the concluding stages, our primary aim was to narrate our data, ensuring the merit and validity of our analysis. To achieve this, we sought input from VELUX participants and academic colleagues for their valuable insights and feedback on the report.

4. Findings

In this section, we reflect on the insights emerging through our thematic analysis, as illustrated in Figure 1, of the microfoundations of lean leadership for instituting lean and its underlying learning system at VELUX through the philosophical lenses of Monozukuri, Hitozukuri and Kotozukuri.

4.1. Monozukuri

The Monozukuri principle highlights the importance of creating a stable work environment for continuous improvement efforts. A stable work environment helps minimise variability and reduce waste, enabling organisations to focus on improving processes and creating value (Liker, 2021). Therefore, the new production manager saw it as his first task to start instituting a stable work environment for people, machines, and teams, as he had observed from day one that the panes’ production was in a chaotic state. For example, the shop floor and maintenance workers were firefighting, responding to unexpected events or crises without understanding the underlying causes or how to prevent them from recurring. As a result, many workers were feeling overwhelmed, stressed, and frustrated as they struggled to keep up with the demands of the job while trying to deal with unexpected problems as they arose. The new production manager, therefore, sought to create a more stable and predictable working environment that allowed workers to focus on their tasks and responsibilities without being pulled away to deal with unexpected problems. According to the new production manager, by doing so, workers became more productive and efficient, benefiting the whole organisation.

‘When a worker understands that they can take the time they need to solve a problem, they become calm and can focus on the task at hand, which not only removes some of the stress and anxiety present before but also has a calming effect on the workers. This is true when I encourage them to take their time instead of imposing tight deadlines.’

Monozukuri also entails understanding the process of creating products or services. Workers must understand their work to identify improvement areas and implement changes (Hines et al., 2022). According to our findings, both leaders and the workers highlighted that shop-floor workers had become able to understand their work and associated problems.

‘Since he [the new production manager] joined us, things have shifted on the shop floor. Now, when stuff goes wrong, we don’t just roll with it. We hit the brakes to find what’s causing the issues – that’s new for us. He brought in these pit-stop meetings, where we aim to prevent troubles instead of firefighting. We’re learning to plan, not just react. It’s different, but we like it. We workers can now stop the machines if they’re messing up and decide when to restart.’

Acquiring this capability required them to improve their work by finding, facing, framing, and forming solutions to problems. A systematic problem-solving approach is crucial in driving continuous improvement efforts (Liker, 2021). Organisations can start instituting preventive problem-solving detection as the workers become proficient in systematic problem-solving. The shop floor and maintenance workers began transitioning into preventive maintenance practices of working together, detecting and addressing problems early, thereby avoiding more severe issues. Moreover, a practice of long-term thinking was introduced where production lines are not started until the root cause of unplanned stops is identified.

‘As a production manager, integrating TPM (Total Productive Maintenance) into our routines has been significant. Stopping production lines to fix issues also sends a strong message, a practice I’ve introduced that hadn’t been done before by previous managers.’

4.2. Hitozukuri

The Hitozukuri principle emphasises the importance of developing people’s skills and abilities by providing employees with systematic problem-solving challenges (Ballé et al., 2019a; Saabye et al., 2022). As a result, according to the leaders and workers at the panes factory, they now regard problems as learning opportunities, indicating a willingness to learn and improve. Furthermore, by focusing on developing a more skilled and engaged workforce through systematic problem solving, tasks and responsibilities are now assigned on trust and with a belief in workers’ abilities.

‘In the beginning, my role was to grant workers the freedom and time to experiment in problem-solving, allowing them the freedom to learn from failures.’

According to workers, this fosters a sense of feeling valued and supported by their leaders and motivates them to further develop their systematic problem-solving skills and become more capable of contributing to the factories’ continuous improvement efforts.

‘The leaders are focused on NOT providing the solutions; they want us to find them. The leader acts as if they do not know anything, even though they do, and instead, they guide us.’

Moreover, the workers indicated the presence of psychological safety and a supportive learning environment (Fenner et al., 2023). Adopting a mindset that regards failure as an opportunity to learn has been established and is promoting a growth mindset and an environment of ongoing education and learning. It involves workers finding, facing, framing, and solving problems, facilitating learning and development through humble questioning for leaders and peers.

‘He [the new production manager] has helped us as shop floor workers to place great importance on visibility, applying lean thinking, asking the right questions, and digging into the core issues.’

The workers and leaders also became aware that they all learn differently. Time and space were allocated to the workers to learn and experiment with handling problems and putting new ideas into play, which promoted creativity and innovation. By embracing these principles of Hitozukuri, the panes factory was turning into a workplace where the workers felt safe to take risks, learn from failures, and grow and develop their skills (Bortolotti et al., 2015).

‘As a shop floor worker, I’ve come to accept that we all have unique ways of learning. For some, it takes repeated exposure, maybe ten times or more, to grasp something. Looking ahead, my role will involve helping others learn and develop. Now, learning, to me, encompasses curiosity, active listening, inquisitiveness, being present, and showing empathy.’

Some senior workers were also trained to foster systematic problem-solving among peers since developing peers to become effective problem-solvers also involves teaching them how to work with their colleagues. As a result, the panes factory’s workers became more empowered and engaged by fostering a peer-to-peer problem-solving culture.

4.3. Kotozukuri

Kotozukuri is a principle that emphasises continuous improvement and employee involvement in manufacturing. One way to achieve this is by aligning improvement efforts across departments and functions so employees work towards reaching common improvement objectives (Liker & Convis, 2011). This approach enabled the panes factory to avoid silos and achieve a more significant impact.

‘As the maintenance manager, I observed a huge transformation. His alignment with the team fostered a robust focus on collaborative teamwork. He initiated small experiments using overlooked issues and fostering the workers to implement new processes, sparking improvements. He facilitated regular meetings to plan for systematic maintenance. His view of machines as processes led to meticulous checklists, enhancing quality.’

By embracing Kotozukuri and aligning improvement efforts across departments, the panes factory improved its manufacturing processes and outcomes, increasing efficiency, quality, and customer satisfaction. Both the workers and leaders identified this collaborative approach as one that promoted a culture of teamwork and continuous learning. Employees felt empowered to share their knowledge and contribute to improving their manufacturing processes to achieve long-term success.

‘As shop floor workers, we’re progressing in our capacity to collaborate across production, quality, and maintenance, all working towards a common goal. There was a tendency to finger-pointing, such as maintenance attributing issues to operator fault’.

In addition, leaders must set the direction and tone for improvement efforts and engage and empower employees to contribute (Liker & Convis, 2011). The new production manager was transformational in mobilising the panes factory towards these objectives.

5. Discussion

The detailed analysis of the panes factory’s lean transformation through the lenses of Monozukuri, Hitozukuri, and Kotozukuri principles reveals the microfoundations of lean leadership as critical for adopting lean and its underlying learning system leading to improvements, e.g. like OEE from 30% to 60%.

Monozukuri’s emphasis on a stable work environment for continuous improvement forms the bedrock of lean leadership microfoundations (Liker & Convis, 2011, p. 229). The new production manager’s recognition of the chaotic state of the panes production set the stage for instituting stability as a prerequisite for improving OEE. By creating a predictable working environment, the presence of Monozukuri fostered workers to focus on tasks and responsibilities, leading to productivity.

The psychological impact, evident in reduced stress and anxiety, underscores the importance of leaders providing employees with the time needed for problem-solving. This alignment with Monozukuri establishes the foundation for systematic problem-solving, a pivotal facet of mastering lean methodologies. Incorporating leadership routines, such as regular gemba walks and structured problem-solving sessions, underscores the connection with Monozukuri principles. The meticulous practice of preventive maintenance and the cultivation of a long-term perspective further exemplify how Monozukuri’s guiding principles seamlessly integrate into the intricate micro-level dynamics of the organisation (Felin et al., 2012). Recognising these as essential leadership routines reinforces the alignment with Monozukuri. It emphasises their role in fostering an environment conducive to individual well-being and the sustained success of lean practices within the organisation.

Hitozukuri’s focus on developing people’s skills through systematic problem-solving challenges aligns with establishing a lean learning culture (Saito et al., 2013). This can be achieved through leading with questions rather than statements of knowledge (Saabye et al., 2023). Allowing workers to experiment and learn from failures promotes a mindset shift where problems are viewed as learning opportunities. The leaders’ role in guiding rather than providing solutions contributes to a psychologically safe learning environment. This is a microfoundational shift, fostering an attitude of continuous improvement and a growth mindset. Recognition of diverse learning styles, coupled with allocated time and space for experimentation, echoes the essence of Hitozukuri and is essential for the employees’ ability to identify the root causes of the low OEE and the ability to form and implement countermeasures to improve the OEE. Empowering senior workers to foster peer-to-peer problem-solving exemplifies implementing lean learning principles across the workforce (Saabye et al., 2023).

By aligning improvement efforts across departments, Kotozukuri’s emphasis on continuous improvement and employee involvement serves as a microfoundation for organisational excellence (Ljungblom & Lennerfors, 2021). Improving the OEE requires a cross-departmental effort from the production, quality and maintenance departments. The transformation witnessed by, e.g. the maintenance manager speaks to the impact of collaborative teamwork initiated by the alignment of objectives. By avoiding silos and promoting collaboration, Kotozukuri creates an environment favourable to collective learning and improvement. The progress made by shop floor workers in collaborating across functions reflects the success of Kotozukuri principles in breaking down barriers and fostering a united front towards common improvement objectives.

From the thematic analysis depicted in Figure 1, we derive the distinctive leadership of the new panes production manager in cultivating a lean learning system, marked by four fundamental microfoundational routines. He emphasises standardising work and documenting actions to ensure transparency and accountability, reduce variability, and lay a foundation for learning and continuous improvement (Liker, 2021). This routine serves as a baseline for identifying areas for improvement and sharing knowledge across the organisation.

The manager also prioritises facilitating problem-solving and learning opportunities, believing that stopping production to prevent future problems is crucial (Kristensen et al., 2022). This creates a culture where workers perceive problems as learning opportunities, encouraging a sense of ownership and responsibility for problem-solving. The manager acknowledges diverse learning styles and actively seeks action learning opportunities to improve processes and achieve departmental goals.

Moreover, the manager demonstrates empathy, attentive listening, and caring for the workers. This routine, coupled with humble questioning, allows him to understand employee perspectives, identify pain points, and reduce stress levels (Fenner et al., 2023)

The manager is committed to self-learning and development, emphasising understanding problems by observing and learning on the shop floor (Liker & Convis, 2011). This approach avoids imposing solutions on workers, fostering a deeper understanding of problems and enabling more informed decision-making.

The analysis underscores the transformative role of leadership in aligning the organisation with lean principles. The new production manager’s lean leadership routines, as outlined in Table 3, acted as a catalyst in mobilising the panes factory toward lean objectives, as seen in the introduction of preventive maintenance and problem-solving practices and the deliberate halt of production for root cause analysis. This leadership approach exemplifies the microfoundations of lean principles, Monozukuri, Hitozukuri, and Kotozukuri, which are embedded practices shaping daily routines, problem-solving approaches, and collaborative efforts at the micro-level. Leadership emerges as the linchpin, orchestrating these principles into a harmonious symphony that propels the organisation toward continuous improvement and sustained excellence.

Table 3. Roadmap towards lean adoption.

Steps	Capability	Leadership routines
1. Create a stable work environment	Passion (craftsmanship) for manufacturing and creating high-quality products (Monozukuri)	− Stay calm and curious − Get energised from running towards problems − Avoid assuming what the problems are − Do not impose solutions on the workers; let them discover them themselves − Ensure that documentation and standards are used for learning − Show that stopping production to prevent future problems is the best cause of action − Self-learning and reflection
2. Promote learning through problem-solving	Passion for developing the skills and knowledge of employees to improve the quality of work and productivity (Hitozukuri)	− Deeply care for people − Focus on reducing employees’ stress levels − Always provide time to learn and experiment − Perceive problems as learning opportunities − See not succeeding as learning − Acknowledges that people learn differently − Leading with questions rather than statements of knowledge − Self-learning and reflection
3. Foster cross-Departmental Collaboration	Passion for fostering value-creating actions and changes through organisational capabilities that support innovation and adaptability (Kotozukuri)	− Focus on addressing peoples’ flawed mental models (questioning assumptions) − Facilitates common goals across departments − Facilitation so that the workers together find solutions themselves − Facilitates teamwork and group learning across departments − Self-learning and reflection

6. Conclusion

This paper provides empirical evidence that lean should be seen as a human learning system (Ballé et al., 2019a) and reinforces the Toyota perspective of ‘we make people before we make cars’ (Liker, 2021). Moreover, the paper contributes new insights to the extant lean research stream on what constitutes the microfoundations of lean leadership for adopting a lean and its underlying learning system through the Japanese philosophical terms ingrained within TPS of Monozukuri, Hitozukuri, and Kotozukuri. The paper also provides a deeper understanding and translation of these three Japanese terms into a Western context. The paper also extrapolates four essential microfoundations of lean leadership for fostering lean and its underlying learning system.

6.1. Implications for practitioners

The insights from this study hold significant implications for practitioners aiming to enhance lean adoption within their organisations. Recognising the multifaceted nature of successful lean implementation, practitioners can benefit from a structured approach guided by the routines and capabilities of Monozukuri, Hitozukuri, and Kotozukuri. To provide practical guidance, we introduce Table 3, a roadmap delineating the deployment of different leadership routines and capabilities essential for successful lean adoption.

6.2. Limitations and future research

Analysing the microfoundations of lean leadership exhibited by the new panes production manager highlights certain considerations. The study’s focus on the panes factory limits the generalisability of findings. Future research could explore similar industry leadership practices to enhance external validity. The new production manager can be characterised as embodying the traits of a lean sensei (Ballé et al., 2019b).

Therefore, future research should investigate the similarities and distinctions among lean sensei to deepen our understanding of the microfoundations underpinning lean leadership. This inductive and exploratory study lays the groundwork for the subsequent research phase, involving testing these insights across various industries and countries to overcome limitations and gain deeper insights into the actions and methods of lean leaders, encompassing their chronological processes.

Acknowledgements

We extend our heartfelt gratitude to Jesper Christensen for his collaboration. His expertise, unwavering dedication, and collaborative spirit have left an indelible mark on our research project, profoundly influencing our expanded understanding of lean leadership and the intricacies of lean adoption.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability

The author’s data supporting this study’s findings are available upon reasonable request.

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.