A transformation is underway in the manufacturing and business worlds thanks to a new way of thinking.
It is time to use this methodology to change how we develop our communities.
Going Lean
In the 1990’s, the South Beach diet, Mediterranean diet and low fat diet were all the rage. At the same time, businesses were going on a similar diet in an effort to “go lean.”
“Lean manufacturing” was a term first applied to Toyota in 1988. It referred to their unique focus on eliminating waste. By eliminating everything from wasted efforts by employees to wasted time when supplies and machines would sit idle, Toyota mastered efficiency.
Lean Startups
Soon, the lessons from manufacturing spread. Eric Ries’ book, The Lean Startup, took these lessons to the technology world, where moving fast and innovating were keys to success.
The goal of the methodology, as articulated by Ries, is to create the smallest possible version of a product or service and release that “minimum viable product” (MVP) to customers. Then test what customers think, discover what breaks and identify how to improve based on actual feedback.
Every business can benefit from incorporating this methodology. When an idea surfaces, work to separate the final product into pieces. What is the smallest functioning version of the product you can create? Work first towards that MVP. Then, share it with your customers and get feedback. This iterative process not only improves your product, it also creates achievable goals and realistic timelines.
This focus on releasing a product quickly and then iterating as necessary is a far cry from what most businesses do. Usually, meetings are called and a product or service is decided upon as the goal for the company. Extensive work is invested to create the perfect product or service. When it is finally ready, with all the bells and whistles, the product is sent to customers where it may (or may not) sell.
The problem with this method is all of that time and energy might be wasted if customers don’t like the product.
In contrast, if a company releases the MVP to customers, they will learn as soon as possible what is wrong and can shift course accordingly.
Lean Community Development
The lean lessons from the manufacturing and business worlds can now be applied to community development.
For years, the model for economic development has focused on large-scale projects that could single-handedly develop a local economy. This might mean building a stadium or event center, providing tax benefits and land to recruit a large business or unveiling a 50 year blueprint for the future direction of the community.
This model of development has served communities well for many years, but times have changed. Just as manufacturing and business evolved with new thinking and technology, so too can economic development.
Identify Need
Lean development is a new way of pursuing economic development in a community. Instead of focusing on one big goal, the objective is to seed potential events, businesses and people who could improve the community. It might be the launch of a small business grant, the opening of a public art space or a local event like TEDxBrookings that brings different community members together to discuss how to make their city better.
Every program, launch and event is a test. The community learns what works. These experiments highlight what the community needs most and who should take the lead.
Avoid Waste
In keeping with lean methodology, lean development avoids waste. The community makes incremental changes before investing too heavily in one strategy. This stands in stark contrast to the potential risk of throwing away money and time on tax breaks for a business that fails, creating an event that no one attends or building a public building that exceeds costs and doesn’t meet revenue expectations.
Community Participation
Lean development also divides work among members of the community and enables “crowd-sourced development.” Instead of one person or one department leading the development of the community, the community itself leads its own development. In short, economic development becomes the job of everyone.
If every community member is encouraged to try something to make the community better, the community is continually testing ideas and improving. Plus, when community members are active participants in their community’s development, they’re more likely to stay. They are invested and are working to build the place they want to live.
Lessons for Community Development
Creating the perfect product or outlining every step a community should take over the next half century is nearly impossible. The time and effort put into these herculean tasks creates waste and stops important learning that could be gained along the way.
The manufacturing and business worlds have discovered that many small launches and improvements trump attempts to create the perfect product. It’s time for our communities to learn the same lesson. Let’s all take a role in developing our communities.
Photo: Jason Paluck
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