Kaizen Cycle

The Kaizen cycle is a process used to improve efficiency and productivity, reduce waste and costs, and increase customer satisfaction.
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What is Kaizen?

The term ‘Kaizen’ is a Japanese concept that translates to ‘change for the better’. In the business context, it refers to a philosophy or practice that focuses on continuous improvement in all aspects of a business, from management to manufacturing processes. It’s a way of thinking that promotes the idea that small, incremental changes can lead to significant improvements over time.

Kaizen is not a one-time event or a project with a defined end date. Instead, it’s an ongoing, long-term approach that involves everyone in an organisation, from the CEO to assembly line workers. It encourages all employees to come up with ideas for improvement, no matter how small, and it is these small changes that accumulate over time to bring about substantial improvements to an organisation’s efficiency, effectiveness, and profitability.

The beauty of the Kaizen process is that it’s adaptable to any business or industry. Whether you’re a large multinational corporation or a small startup, the principles of Kaizen can help you streamline your operations, improve product quality, and create a culture of continuous learning and improvement.

Origins of Kaizen

The concept of Kaizen originated in post-World War II Japan when the country was in the process of rebuilding its economy. The term was coined by Japanese industrialists who were looking for ways to improve productivity and efficiency in their factories. They found that by making small, incremental changes to their processes, they could significantly improve their output and quality.

The success of this approach soon caught the attention of the Western world. In the 1980s, Kaizen was introduced to the United States by Masaaki Imai, a Japanese organisational theorist and management consultant. He founded the Kaizen Institute, which has since helped thousands of companies worldwide implement the Kaizen methodology.

Today, Kaizen is recognised as one of the key factors behind Japan’s economic success and is widely used by businesses around the world, including household names like Toyota, Sony, and Canon.

Kaizen Philosophy

The philosophy of Kaizen is built on the belief that every process can be improved, and that improvement is a continuous journey, not a destination. It emphasises the importance of ongoing, incremental changes as a means to achieve significant results over time.

Kaizen also fosters a culture of empowerment and ownership among employees. It encourages everyone in an organisation to participate in problem-solving and improvement efforts. This can lead to increased job satisfaction, better teamwork, and a more engaged and motivated workforce.

The Kaizen philosophy is also about eliminating waste in all forms. This could be waste in terms of time, resources, or effort. By identifying and eliminating wasteful practices, organisations can streamline their operations and improve their efficiency and profitability.

Preparing for a Kaizen Process

Before embarking on a Kaizen initiative, it’s essential to prepare your organisation for the change. Here are some top tips and key considerations to get you started.

  • Have a clear understanding of what Kaizen is and what it entails. This includes knowing the principles of Kaizen and how it differs from other improvement methodologies.
  • Create an environment that supports continuous improvement. This means fostering a culture that encourages employees to come up with ideas for improvement and rewards them for their contributions.
  • Have a systematic approach to implementing Kaizen. This includes setting clear goals, identifying key performance indicators (KPIs), and establishing a process for monitoring and evaluating progress.

Typical Kaizen Process – step by step

The Kaizen process typically involves six steps. Let’s look at each of these in detail.

Kaizen Cycle

1. Identify a problem or opportunity

The initial and most crucial phase in the Kaizen methodology, a Japanese business philosophy of continuous improvement, involves pinpointing a particular issue or recognizing a potential area for enhancement. This identified area of focus could range from a wide variety of situations. It could be a bottleneck, a point of congestion or blockage, in a manufacturing or production process that hinders efficiency and productivity. Alternatively, it could be a complaint lodged by a customer, which indicates dissatisfaction and presents an opportunity for service improvement.

To identify these issues, you can use various techniques such as brainstorming sessions, customer feedback, or data analysis. The aim is to uncover areas where there is room for improvement.

2. Analyze your current process

Once you have successfully pinpointed a problem or an opportunity, the subsequent step in your journey is to thoroughly analyse your existing process. This crucial step necessitates a comprehensive mapping out of the process in its entirety, delving into the minutest details, and pinpointing the exact locations where the issues are rooted.

In order to gain a clearer understanding of the process, you have the option to utilize instruments such as flowcharts or process maps. These tools serve as visual aids, enabling you to comprehend the order in which events occur. Furthermore, they can assist you in identifying any areas where the process may be lacking efficiency. By doing so, you can accurately pinpoint specific areas where enhancements can be implemented to improve the overall process.

3. Develop or identify an ideal solution

Upon thoroughly examining and understanding the intricacies of your existing operational procedure, the subsequent course of action is to either formulate or pinpoint an optimal resolution. This crucial stage encompasses the generation of innovative concepts aimed at enhancing the process, critically assessing the feasibility and potential of these proposed ideas, and ultimately, making a decision to proceed with the most promising and effective solution.

Utilizing various methods such as the creative process of brainstorming or the problem-solving tool known as the ‘5 Why’s’ can be highly beneficial in generating a plethora of innovative ideas. Once these ideas have been generated, it’s crucial to thoroughly evaluate them. This evaluation should be based on several key factors including their feasibility – can they be realistically implemented, their potential impact – what kind of difference they could make, and their alignment with your strategic objectives – how well they fit into your overall plan and goals.

4. Implement the solution

Once you have successfully pinpointed an optimal solution that suits your needs, the subsequent step in the process is to put this solution into practice. This crucial phase involves the creation of a comprehensive and detailed plan for implementation. This plan must then be effectively communicated to all relevant stakeholders, ensuring they are fully aware of the strategy and their roles within it. Finally, the last part of this step is to take the carefully crafted plan and put it into action, transforming the theoretical solution into a practical reality.

During the implementation phase, it’s important to monitor progress closely and address any issues that arise promptly.

5. Study the results and adjust what doesn’t work

Once the solution has been put into practice, the subsequent phase involves closely examining the outcomes and making modifications to elements that are not yielding the desired results. This comprehensive process entails gathering relevant data, meticulously scrutinising the results derived from this data, and making the requisite adjustments to optimise the solution.

It’s important to remember that not all solutions will work as expected. If a solution is not delivering the expected results, don’t be afraid to make changes or try a different approach.

6. Standardise the solution

Once you’ve successfully identified a solution that effectively addresses the problem at hand, the subsequent step in the process is to standardize this solution. This standardization phase involves several key tasks. Firstly, you must document the newly established process in a clear and comprehensive manner. Secondly, it’s crucial to conduct training sessions for employees to familiarize them with this new process and ensure they are fully equipped to implement it. Lastly, it’s of utmost importance to ensure that the newly standardised process is consistently adhered to, thereby ensuring its effectiveness and longevity within the organisation.

By implementing standardisation in the solution, we are able to guarantee that the enhancements made are not just temporary but are maintained consistently over a prolonged period. This also serves as a preventive measure, ensuring that the same problems do not make a reappearance in the future.

7. Repeat for the next problem

The ultimate and concluding phase in the Kaizen methodology is to perpetually repeat the process for the subsequent issue that arises. This necessitates the identification of a fresh problem or opportunity that needs addressing. Following this, it’s crucial to conduct a thorough analysis of the existing process to understand its current state. Once this is done, the next step involves brainstorming and developing a viable solution that can effectively address the identified problem. 

After the solution has been developed, it’s time to put it into action by implementing it. Post-implementation, it’s essential to study the results and outcomes of the solution to evaluate its effectiveness. Finally, if the solution proves to be successful, it should be standardized and made a part of the regular process. This entire cycle then begins anew with the identification of the next problem or opportunity.

By continuously repeating this process, you can ensure that your organisation is always improving and moving forward.

Why does Kaizen fail? Key reasons it doesn’t work

While Kaizen can deliver substantial benefits, it’s not always successful. There are several reasons why Kaizen initiatives may fail.

  1. Lack of Understanding from Top Management: If the leaders of an organisation don’t fully understand Kaizen or are not committed to its implementation, the initiative is likely to fail.
  2. Poor Employee Engagement: If employees don’t feel involved or don’t see the value in the changes being made, they are unlikely to support the initiative.
  3. Absence of a Systematic Approach: Without a clear plan, measurable goals, and a process for tracking progress, it’s challenging to ensure the initiative’s success.
  4. Insufficient Training: Without adequate training, employees may not understand the Kaizen process or their role in it, leading to implementation failure.
  5. Resistance to Change: People often resist change, and if this resistance isn’t managed effectively, it can hinder the adoption of Kaizen.
  6. Lack of Continuous Monitoring: Kaizen is not a one-off event but a continuous process. If monitoring is not persistent, the initiative can fall off track.
  7. Inadequate Resources: Implementing Kaizen requires time, effort, and sometimes financial resources. If these are not available, the initiative may fail.
  8. Poor Communication: If the benefits and changes of the Kaizen initiative aren’t communicated effectively, it can lead to confusion and lack of support.
  9. Failure to Standardise Successful Changes: Kaizen involves making changes and standardising them if they’re successful. If this doesn’t happen, improvements can be lost.
  10. Lack of Patience: Kaizen is about small, incremental changes over time. If organisations don’t have the patience to wait for these improvements, they may abandon the initiative prematurely.


The Kaizen process is a powerful tool for continuous improvement. By focusing on small, incremental changes, organisations can achieve significant improvements in efficiency, effectiveness, and profitability. However, to be successful, Kaizen requires a clear understanding of its principles, a supportive culture, and a systematic approach to implementation.

Kaizen Cycle Template

Click the link to download this Kaizen Cycle template to explore with your own team or organisation.

Kaizen Cycle


 James Freeman-Gray 

I'm James. A change consultant and organisational development specialist. I've been working in people-centred change for over 15 years. I partner with causes, champions, teams & leaders on projects for social, environmental, technological & human good. If you think I can support in making your change a success, drop me a message. 

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