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Über dieses Buch

This book explores the relationship between and the compatibility of lean management (LM) and value-based management (VBM) approaches at the systems level. It then develops a model to improve LM and VBM professional practice by fostering a shared understanding of the value creation process within a lean system, and in doing so helps to remove existing barriers. The results promote future fruitful alliances between a company's operational and financial communities, enhancing the benefits to the enterprise and its stakeholders. The book is of primary interest to LM and VBM professionals and researchers.



Chapter 1. Introducing the Study of Lean and Value-Based Management

Since its beginnings in the 1990s, lean management (LM)—an operations management system characterised by its principal attribute of high stakeholder emphasis, focusing first on customer value and second on the interests of all other relevant stakeholders—has gained remarkable prominence and become the prevailing philosophy of countless firms throughout various industries. In parallel, value-based management (VBM)—which emphasises the enhancement of shareholder value to be the main driver of a company’s success—has increasingly gained business relevance and turned out to be a generally accepted management control system (MCS) for over 20 years.
It is likely for both management approaches (i.e., LM and VBM) to be employed in parallel in many companies, as both have been widely employed for decades and attested to be of major importance throughout business reality.
Gerd Kaufmann

Chapter 2. Theoretical Background of Lean and Value-Based Management

Contributing to the first research objective, the theoretical background first familiarises the reader with the concepts and key characteristics of LM and VBM. While reviewing these two approaches, it is found that, surprisingly, neither the term “value” nor “value driver” is clearly defined. Therefore, a new definition of both terms is presented that captures and harmonises both areas.
Serving the second objective, a systematic assessment of LM literature against the six-step normative VBM framework of Ittner and Larcker (Journal of Accounting and Economics 32(1/3), 653, 2001) is conducted in order to determine lean’s compatibility with VBM based on existing knowledge.
Finally, this appraisal addresses the study’s third objective, as it is found that although LM is overall highly capable of contributing to the normative VBM demands, it lacks a satisfactory lean value driver model and related indicators to be used within the value creation process in a lean system.
Gerd Kaufmann

Chapter 3. Methodology to Align Lean and Value-Based Management

This chapter outlines the research design of the current study. It starts by describing the all-embracing “research masterplan”, which contains the creation of a conceptual value driver model based on existing literature (see Chap. 4) and its validation and refinement through primary data (see Chap. 5). Moreover, this chapter details the study’s underlying methodological framework, which reflects the author’s research philosophy of critical realism, as well as related methodological choices and strategies.
Gerd Kaufmann

Chapter 4. Examining Prior Research of Lean Management

Paving the ground to achieve the study’s third objective, the key gap identified in Chap. 2 is addressed through an extensive analysis of LM literature, resulting in the creation of a first version of an entirely new lean value driver model and the initial identification of specific indicators to measure the value creation process, providing a foundation for the primary empirical research.
Gerd Kaufmann

Chapter 5. Lean Value Creation Process: Findings from Primary Data

Building on the findings and insights from the previous chapter and in order to fully achieve the third objective, primary data are collected by interviewing 10 top managers with extensive experience in LM.
The findings most importantly provide sufficient evidence regarding the validity of the newly developed conceptual model. Furthermore, highly valuable fresh insights are presented concerning formerly and newly identified stakeholders, their importance, requirements, contributions, associated indicators, and the relationships between them.
Gerd Kaufmann

Chapter 6. Discussion of the Alignment of Lean and Value-Based Management

This chapter summarises and discusses the findings and results gained throughout the study and outlines its main contributions to theory and professional practice, fostering a shared understanding of the value creation process within a lean system and thereby helping to remove existing barriers through the following measures:
  • Confirmation of the compatibility of LM and VBM approaches
  • Clarification of the key concepts of “value” and “value driver”
  • Provision of a sufficient lean value driver model
In addition, specific important findings concerning shareholders’ and managers’ roles within the value creation process are discussed in more detail. Finally, the quality of the study is assessed, its limitations are outlined, and avenues of future research are proposed.
Gerd Kaufmann


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