Continuous Profitable Growth at Danaher Corporation
PICTURES BEFORE
Problem
• Up to 1991, the Danaher Production System only sought to improve costs
Danaher Production System
Business impact of “System”
gemba Leadership
gemba
Problem Solving
gemba
Visual Management
Managing 5 KPI Drivers
At the gemba
DAILY MANAGEMENT
• The impact on sales was indirect (through Quality and Just In Time Delivery)
Lean Production Conversion
Business
System
Root causes
Production
System
Lean/Daily Management
CI Culture
Respect for People
Long Term Philosophy
+ Hoshin Kanri / Strategy A3s
+ Systematic Innovation
+ Enterprise Portfolio Management
+ Enterprise Program Offices
+ Real Time “Closed Loop” Visibility
+ Transformational Leadership
Typified by Danaher
Typified by Toyota
• No model or tools to improve non-production departments such as Innovation, Product
Development, Sales or Logistics
• Top Management not seeing the benefits
• Strategy planning not following Lean principles
Breadth and Depth of “System”
Solution approach
PICTURES AFTER
• Expand Lean to Mergers & Acquisitions (M&A)
Danaher Business System
DBS 1991 - 2001
use policy deployment to
drive improvement across
entire business
• Expand Lean to business processes and engage the Top Management
• Expand Lean to cover idea-to-execution processes
Benefits
DBS 2001 - Present
adds new tools to
address growth and
supply chain processes
20% growth every year
Total return, dividends reinvested
80%
60%
Market valuation:
80.000% since 1980
40%
20%
0%
-10% Jul 1980 Jul 1985 Jul 1990 Jul 1995 Jul 2000 Jul 2005 Jul 2010 Mai 2015
Danaher
S&P 500