Purpose
Simplify and optimize how the company operates before introducing automation or AI, removing structural friction so that what gets digitized actually creates value.
Includes
Waste elimination, structural simplification, reduced operational friction, intelligent standardization.
What It Enables
- Simpler and faster operations
- Fewer unnecessary dependencies
- Clear, standardized processes
- A solid foundation for automation
What Changes in Operations
- fewer unnecessary steps in value streams;
- no duplication or rework;
- clear decision rules;
- simpler interaction between areas.
Deliverables
- Simplified value stream maps
- Identified operational waste
- Standardized processes with clear rules
- Removal of unnecessary approvals or validations
Indicators
- Cycle time of key processes
- Number of handoffs between areas
- % rework
- Operating cost per transaction
Risks If Skipped
- Automating inefficient processes
- More operational complexity
- Excessive dependence on human intervention
- Costs that do not come down despite digitizing
Signs of Maturity
- Critical processes are understandable and consistent.
- There are clear operating and decision rules.
- Steps are removed before being digitized.
- Automation is built on stable processes.
Typical Quick Wins
- Remove redundant approvals
- Simplify administrative flows
- Standardize forms and data capture
Relationships
Prepares operations for Intelligent Automation and Agents, so that technology amplifies value, not complexity.
In Practice
It is the most overlooked dimension. “Waste is not automated.” Automating a poorly designed process does not improve it, it speeds it up: it multiplies its volume, hides its inefficiency behind a screen, and makes any future correction more expensive.
Automating an inefficient process does not improve it: it makes it permanent.
— Mauricio Peschard
Lean Principles Applied to the Operating Model
1. Define Value Correctly
What creates real value for the customer? Do not automate irrelevant internal tasks or digitize steps the customer does not perceive as value.
2. Identify and Eliminate Waste
Rework, unnecessary approvals, duplicate data entry, waiting between areas, repetitive manual processes, validations without clear criteria. “In traditional digitization, waste gets automated. In Lean, it is eliminated first.”
3. Simplify Before Automating
“If a process is complex manually, it will be complex digitally.” Reduce variants, standardize criteria, clarify decision rules, and remove poorly designed exceptions. Then automate.
4. Continuous Flow
Fewer handoffs and less dead time, decisions closer to execution. With AI and automation, flow can be almost immediate.
5. Data-Driven Decisions
Clear metrics, real-time visibility, KPIs tied to value, continuous feedback.
6. Continuous Improvement
Measure, adjust, optimize, and simplify constantly, supported by data and automation.
Applied to the whole operating model: fewer unnecessary hierarchical layers, fewer duplicated controls, and less dependence on key people; more clarity in roles and decisions, and more governed automation.