-
What do Strategic Thinking, Operational Excellence, Continuous Improvement, and Employee Engagement Have in Common?
By: Jim Gitney
Strategic thinking, operational excellence, continuous improvement, and employee engagement have many things in common. They are all driven by a core set of inextricably linked operating principles. They: …Read More
This entry was posted in Business Hierarchy of Needs®, Continuous Improvement, Strategy 5.0, Strategy Realized - The Business Hierarchy of Needs®, on January 21, 2023 -
What are the 5 Phases of Lean Deployment?
By: Jim Gitney
Transform Your Business with Lean Deployment
Achieve Maximum Efficiency, Reduce Waste, and Drive Continuous Improvement
Are you looking to streamline operations, boost productivity, reduce waste, and improve profitability? A properly executed Lean Deployment can revolutionize
the way your business operates—helping you achieve more with fewer resources.At Group50® Consulting, we specialize in guiding businesses through a structured, results-driven Lean Deployment that engages employees, vendors, contract workers, 3rd party providers, and customers—ensuring long-term, sustainable success.
What is Lean Deployment?
Lean Deployment is more than just implementing tools—it’s about transforming company culture to focus on efficiency, quality, and continuous improvement. Lean Principles help businesses:
Eliminate waste – Identify and remove bottlenecks and delays.
Improve quality – Build in efficiency and accuracy from the start.
Enhance customer value – Ensure processes align with customer needs.
Foster a culture of improvement – Empower employees at all levels to contribute.
Increase profitability – Reduce operating costs and optimize resource use.
Drive agility and responsiveness – Create a business that adapts quickly to change.The ultimate goal? To create more value for customers while using fewer resources.
The 5 Phases of a Successful Lean Deployment
At Group50®, we guide organizations through a proven five-phase Lean Deployment process based on the DMAIC methodology:
Exploration
- Define your Most Important Goal (MIG) and strategic objectives.
- Assess current operational gaps, inefficiencies, and opportunities.
- Conduct Lean Business and Lean Manufacturing Assessments to create a customized plan.
Establishing the Foundation
-
- Provide targeted Lean training for leadership and stakeholders.
- Identify and launch early-stage Lean projects with visible impact.
- Introduce Kaizen, Value Stream Mapping, and the Brown Paper Exercise to build momentum.
Expansion and Focus
- Scale Lean Deployment across different departments and business functions.
- Introduce more complex Lean tools (Six Sigma, Kanban, 5S, Statistical Process Control, etc.).
- Develop standardized Lean processes for long-term sustainability.
Integration and Reinforcement
- Align Lean Deployment with company-wide strategies and KPIs.
- Build a Lean governance structure with designated champions.
- Foster a culture of accountability and ownership.
Reinforcement and Momentum
- Monitor progress and track ROI on Lean initiatives.
- Continue Just-in-Time (JIT) training for ongoing improvements.
- Ensure Lean becomes part of your corporate DNA—not just a one-time project.
Why Group50®? A Smarter Approach to Lean Deployment
A successful Lean Deployment requires planning, education, and leadership commitment. Without a structured approach, Lean can become just another “flavor of the month” initiative that fades away.
Our Approach Ensures Long-Term Success
Strategic Alignment – We align Lean Deployment with your business goals and Most Important Goal (MIG).
Customized Training & Tools – Our Lean experts provide targeted training that meets your organization’s specific needs.
Change Management Framework – Using Group50’s Business Hierarchy of Needs®, we help drive lasting organizational change.
Hands-On Support – We guide your team through every phase of the Lean process—from initial assessment to full implementation.
Measurable Results – Our structured deployment ensures tangible ROI and sustained process improvements.Real-World Results from Group50® Clients
A global manufacturer implemented Lean with Group50® and reduced operating costs by 20% in 12 months.
A logistics company optimized its workflow and improved order fulfillment by 35%.
A healthcare services provider streamlined operations and saved $2.5M annually by eliminating inefficiencies.What could Lean Deployment do for your business?
Get Started with Lean Deployment Today
Lean Deployment isn’t just about process improvement—it’s about transforming how your business operates.
📞 Call our Lean Business and Manufacturing experts today: +1 (626) 644-9746
📩 Email us at info@group50.com
Schedule a Meeting with our Subject Matter Expert
Group50® – Helping Businesses Achieve Excellence, One Process at a Time.
About the Author: Jim Gitney is the CEO and Founder of Group50® Consulting, and the author of
“Strategy Realized – The Business Hierarchy of Needs®” which summarizes a framework for creating a successful Lean Deployment strategy and demonstrates the results of Value Stream Mapping and the Brown Paper Exercise successfully (You can find out more about the book and acquire a copy by clicking on the image to the right).
Founded in 2004, Group50®consulting is focused on working with middle market companies to significantly improve their productivity by leveraging people, process and technology as part of a company’s strategic plan. Lean Business, Lean Manufacturing, business process improvement and process reengineering are Group50® specialties. Group50® consists of consultants who have spent their careers in corporate America learning how to optimize businesses. We specialize in working with senior leaders to develop and implement programs that leverage people, process and technology to optimize business performance.
This entry was posted in Continuous Improvement, Strategy 5.0, Supply Chain Optimization, Value stream mapping, on January 16, 2023 -
Using the Supply Chain Hierarchy of Needs ™ to Plan Next Steps
By: Jim Gitney
The economy is troubling everyone again. It is unclear how deep the recession is going to be, but it is obvious that demand is declining and many of our clients are continuing to see supply chain issues. I expect to see another lead and lag between demand and supply over the next 8-12 months, so here we go again.
You and your team are probably trying …Read More
This entry was posted in Business Hierarchy of Needs®, Business Transformation, Organizational Development, Strategy 5.0, Supply Chain Hierarchy of Needs, Supply Chain Optimization, on August 11, 2022 -
Supply Chain Hierarchy of Needs™
By: Jim Gitney
Supply chains are the heart and arteries that drive a company’s strategic success. From raw materials through the full life cycle of the product or service, lean supply chains have constantly changing requirements and have been significantly challenged with the frequency of massive disruptions. The Supply Chain Hierarchy of Needs™ provides a framework for …Read More
This entry was posted in Business Hierarchy of Needs®, Strategy 5.0, Supply Chain Hierarchy of Needs, Supply Chain Optimization, on August 9, 2022 -
Strategy Realized – The Business Hierarchy of Needs® – Talent Optimization
By: Jim Gitney
These statistic from Boardview.io should cause pause to all senior leaders:
“80% of leaders feel their company is good at crafting strategy but only 44% at its implementation”
To make matters worse, they also report:
10% of organizations achieve at least two-thirds of their strategy objectives, with 36% achieving between 50%-67% and 54% achieving less than 50%
I have no reason to doubt these statistics based on what we see in our consulting work. The primary reasons for this are: …Read More
This entry was posted in Business Hierarchy of Needs®, Organizational Development, Strategic Planning 5.0, Strategy 5.0, Talent Management, on July 26, 2022 -
8 Things You Need for Recession Planning – Making the Right Choices Now
By: Jim Gitney
Whether we want to call this a recession or just unfortunate circumstances, I think that we can all agree that business is being disrupted yet again by external factors beyond management’s control. Interest rates are up, sales are down and inflation is above 8%. Amazon, Tesla, Wells Fargo, Coinbase, Salesforce, Meta and Netflix are a few of the more well-known companies announcing layoffs. Financial indicators …Read More
This entry was posted in Cost Takeout, Global Initiatives, Strategic Planning 5.0, Supply Chain Optimization, on July 8, 2022 -
Video Explanation of the Business Hierarchy of Needs®
By: Jim Gitney
90% of companies do a poor job executing their strategy
The Business Hierarchy of Needs® and and Strategy 5.0™ are part of Group50’s suite of strategic planning and execution tools. In this 20 minute video, Jim Gitney, the Founder and CEO of Group50, summarizes how the Business Hierarchy of Needs®, a change management framework, can be used by Boards of Directors and senior leadership teams …Read More
This entry was posted in Anti-Strategy, Business Hierarchy of Needs®, Strategic Execution 5.0 ™, Strategic Planning 5.0, Strategy 5.0, on April 18, 2022 -
Strategy 5.0™ – Defining the Appropriate Organization Design for a Digital Future
By: Jim Gitney
“𝑰𝒕 𝒊𝒔 𝒕𝒊𝒎𝒆 𝒇𝒐𝒓 𝒂 𝒑𝒂𝒓𝒂𝒅𝒊𝒈𝒎 𝒔𝒉𝒊𝒇𝒕 𝒊𝒏 𝒕𝒉𝒆 𝒘𝒂𝒚 𝒘𝒆 𝒍𝒐𝒐𝒌 𝒂𝒕 𝒕𝒉𝒆 𝒐𝒓𝒈𝒂𝒏𝒊𝒛𝒂𝒕𝒊𝒐𝒏 𝒔𝒕𝒓𝒖𝒄𝒕𝒖𝒓𝒆𝒔 𝒕𝒉𝒂𝒕 𝒘𝒊𝒍𝒍 𝒃𝒆 𝒓𝒆𝒒𝒖𝒊𝒓𝒆𝒅 𝒕𝒐 𝒔𝒖𝒄𝒄𝒆𝒔𝒔𝒇𝒖𝒍𝒍𝒚 𝒍𝒆𝒂𝒅 𝒂 𝒄𝒐𝒎𝒑𝒂𝒏𝒚 𝒕𝒐 𝒂 𝒅𝒊𝒈𝒊𝒕𝒂𝒍 𝒇𝒖𝒕𝒖𝒓𝒆.”
I just published an article on LinkedIn on the Appropriate Design for a Digital Future. You can read it here. For those of you who want a Schaum’s outline version, here we go.
Today’s functional organization structure is no longer appropriate for serving the digital future. Business processes are horizontal, not vertical. So, as part of Group50’s approach to Strategy 5.0™, we are proposing that companies be organized in the following …Read More
This entry was posted in Business Hierarchy of Needs®, Organizational Development, Strategy 5.0, on April 3, 2022 -
Cost Takeout as a Strategy
By: Jim Gitney
Cost Takeout vs. Cost Reduction: A Strategic Approach to Maximizing Profitability
Cut Costs the Right Way—Without Sacrificing Business Growth
Every company looks for ways to reduce costs, but not all cost-cutting strategies are the same.
At Group50® Consulting, we specialize in Cost Takeout as a Strategy—a comprehensive, multi-phase approach that eliminates unnecessary expenses while optimizing business performance.
Unlike short-term cost reduction projects, Cost Takeout is a structured business transformation initiative that restructures operations, redefines strategy, and enhances long-term profitability.
What Cost Takeout IS NOT
Before we dive in, let’s clarify what Cost Takeout isn’t:
A one-time cost reduction project – Cutting costs in a single product, process, or activity is not a strategic approach.
Continuous Improvement (CI) – CI helps reduce costs incrementally over time. Cost Takeout is an immediate, high-impact initiative.
A short-term fix – True Cost Takeout fundamentally reshapes your organization for long-term profitability.
If your leadership team is thinking about a bold move to optimize your cost structure, you need a structured and strategic approach—not just another cost-cutting exercise.
The 3 Phases of a Successful Cost Takeout Strategy
A well-executed Cost Takeout program follows three critical phases, each designed to eliminate inefficiencies, optimize resources, and enhance profitability.
Phase 1: Strategy Definition
- Clarify the Most Important Goal (MIG) – Define the overarching business objective that will guide all cost takeout decisions.
- Develop cost takeout strategies and success metrics – Establish key performance indicators (KPIs) to track progress.
- Create a Cost Takeout Steering Committee – Align leadership and cross-functional teams for maximum impact.
- Design the Cost Takeout Assessment Roadmap – Map out areas of opportunity and prioritization.
- Assign specialized assessment teams – Identify experts who will drive cost takeout initiatives across the organization.
Phase 2: Near-Term Cost Takeout – Assessment & Analysis
In this phase, we identify areas where costs can be reduced without harming business performance:
- Resource redundancies – Optimize roles and eliminate duplication.
- Overhead and fixed costs – Streamline expenses to improve profitability.
- Marketing and advertising ROI – Identify high-impact channels and cut underperforming initiatives.
- Software and hardware costs – Evaluate IT investments and eliminate waste.
- Supply chain costs – Reduce purchased materials expenses and renegotiate contracts.
- Unprofitable products/customers – Exit low-margin areas to focus on profitable growth.
- Geographic footprint – Assess real estate, distribution, and expansion strategies.
Organizational design – Ensure the right structure and skillsets are in place.
By the end of Phase 2, leadership will have a clear roadmap for optimizing business operations, reducing costs, and enhancing profitability.
Phase 3: Long-Term Implementation & Business Transformation
This phase focuses on sustainable cost optimization and strategic business transformation:
Redesign the business model – Optimize operations for long-term efficiency.
Reallocate resources to mission-critical initiatives – Invest in areas that drive growth and differentiation.
Outsource non-core activities – Partner with vendors who can handle non-essential functions at a lower cost.
Rationalize product & service offerings – Focus on the most profitable mix.
Leverage digital transformation – Use technology and automation to drive efficiency.
Reorganize & restructure – Align teams and functions with the company’s long-term vision.
Renegotiate vendor contracts – Secure lower total cost agreements and improve supplier relationships.
Revamp inventory management & supply chain footprint – Reduce waste and optimize logistics.This phase ensures that cost savings don’t just happen once—they become a permanent part of the company’s financial structure.
Why Cost Takeout is a Strategic Business Transformation
Many companies implement cost reduction efforts, only to see costs creep back up within months. Why?
Because most cost-cutting efforts don’t address the root cause of inefficiencies.
A successful Cost Takeout strategy requires:
Full commitment from leadership – This is not a side project—it’s a company-wide initiative.
A holistic, “Wall-to-Wall” approach – Every function and department must be aligned with the cost takeout plan.
A clear Most Important Goal (MIG) – Every decision must be tested against the company’s strategic objectives.
A structured methodology – Cost takeout must be systematic, data-driven, and results-focused.
A well-designed change management strategy – Without proper execution, cost savings won’t stick.Group50’s Business Hierarchy of Needs® ensures that cost takeout strategies align with broader business goals—delivering sustainable, long-term impact.
Why Now? The Urgency of Cost Takeout in Today’s Business Climate
- Recent economic shifts have forced companies to rethink their business models:
- Scaling down during economic downturns.
- Rapid expansion during recoveries.
- Now—normalizing business performance in a new market reality.
Companies that act NOW will position themselves for stronger profitability, greater resilience, and long-term competitive advantage.
But getting it right requires expert guidance.
Work with the Experts in Cost Takeout Strategy
At Group50® Consulting, we have perfected the art and science of Cost Takeout. Our proven methodology has delivered double-digit profitability improvements for clients across industries.
- We help companies make the right cost takeout decisions.
- We design customized programs that minimize costs while optimizing strategic performance.
- We work alongside your team to ensure seamless implementation.
Get Started Today—Maximize Profitability with Group50®
Cost Takeout isn’t just about cutting costs—it’s about building a leaner, more profitable, and strategically optimized business.
📞 Call a Group50® Cost Takeout Expert today at +1 (626) 644-9746
📩 Email us at info@group50.com
Schedule a Meeting with our Subject Matter Expert
Group50® – Helping Companies Achieve Sustainable Profitability Through Smart Cost Takeout Strategies.
About the Author: Jim Gitney is the CEO and Founder of Group50® Consulting, and the author of “Strategy Realized – The Business Hierarchy of Needs®” which summarizes a framework for successfully defining and implementing transformational strategies such as cost takeout (You can find out more about the book and acquire a copy by clicking on the image to the right).
Founded in 2004, Group50®consulting is focused on working with middle market companies to significantly improve their productivity by leveraging people, process and technology as part of a company’s strategic plan. Restructuring and Cost Takeout in manufacturing are Group50® specialties. Group50® consists of consultants who have spent their careers in corporate America learning how to optimize businesses.
We specialize in working with senior leaders to develop and implement programs that leverage people, process and technology to optimize business performance.
This entry was posted in Business Transformation, Cost Takeout, Information Technology, Strategy 5.0, Supply Chain Optimization, on March 2, 2022 -
What is the Business Hierarchy of Needs®?
By: Jim Gitney
In Group50’s early days, we were working with the model shown in the picture to the left when we were doing strategic planning work. It was simple, to the point and easy to talk about. None of our clients were totally convinced that this image told the entire story. It was missing a lot of information and only told the story of getting prepared to implement a company’s strategy. This graphic didn’t include two key elements: …Read More
This entry was posted in Business Hierarchy of Needs®, Manufacturing and Distribution, Strategy 5.0, on February 26, 2022
Article Categories
Latest News
- What Is Your Tariff Strategy?
- Strategy Framework – Where to Play, How to Win, Most Important Goal – Unlock Your Company’s Full Potential
- Why Does a Middle Market Company Need an Advisory Board?
- Value Stream Mapping: Transforming Businesses with Group50 Consulting
- Unlocking Next Year’s Success This Year: The Power of Strategic Planning Consultants
- Is a Culture of Continuous Improvement Right for Your Company?
- Making the Defense Production Act Part of Your Supply Chain Strategy
- Market Effectiveness – The 12 Critical Marketing and Sales Software Systems
- Digital Technology Consulting: Navigating the Digital Landscape
- 5 Things That Keep C-Suite Leaders Up at Night