Can Lean, Blockchain, and Systems Thinking Be Combined?

Back in June,  Machiel Tesser co-authored and published a book entitled Lean Blockchain Systems Thinking: Reinventing Value Streams with John Dennis. This book shows that blockchain, together with Lean and Systems Thinking, can provide multiple advantages for societies and the environment and can be used effectively to meet sustainable development goals (SDGs).

When I spoke with Machiel in July, I asked him: “What are the benefits of combining Lean, Blockchain, and Systems Thinking?" Here is his complete answer:

Blockchain and Lean: Building the Lean Internet

Blockchain and Lean are a match made for the modern era, creating a Lean Internet. Where Lean empowers us to eliminate waste and streamline value, blockchain goes a step further: it prevents waste before it even arises.

Lean lays out the philosophy and methodology, while blockchain delivers the digital toolkit: digital identities, verifiable credentials, automated rules, workflows, and consensus on standards. This makes processes instantly verifiable, compliant with regulations, and building blocks for an intention economy.

What was once theoretical is now tangible: in the U.S., the GENIUS Act is shaping a robust framework for stablecoin issuance and programmable finance. In the EU, MiCA and eIDAS 2 have come into full force (since December 2024), providing regulatory guardrails for digital assets and trusted digital identities.

Now, blockchain and crypto aren’t speculation or hype; they’re legally programmable and digitally enforceable.

Lean workflows in Real-Time

Workflows become pull-based and real-time, backed by quality proofs from the source, just like Lean Kanban: only what’s needed, when it’s needed. Smart contracts automate verification and trigger actions instantly, eliminating manual or paper processes, reducing errors, carbon emissions, and admin overhead.

Continuous, Network-Wide Improvement

Direct feedback loops and transparency cultivate a shared understanding of the network’s intent. It brings stakeholders onto the same page who are willing to improve the system rather than just their own parts. 

Identifying and solving problems together aligns perfectly with the continuous improvement ethos of Lean. By making performance and objectives visible, stakeholders can respond quickly and collaboratively, making progress proactive rather than reactive.

By targeting root causes, not just symptoms, and listening to every voice across the network, this approach shifts us from reactive fixes to proactive systems design. It’s an inclusive, holistic transformation: the true promise of a Lean, a programmable internet, reinventing value streams.

Do you agree with Machiel's perspective? Has blockchain been integrated into your Lean initiative? If so, what have been the results?

What are the Key Ingredients for a Lean Culture?

Paul McCartney, while in the Beatles, famously claimed that “money can’t buy me love" --  According to author Richard D. Brimeyer, money also can’t buy Lean. Rick’s book Working Great! Lean Leadership Lessons for Guiding Your Organization to Excellence contains 52 lessons for leader-managers, each with challenges for applying the lesson. The format is particularly conducive to a leader’s book club.

I chatted with Rick recently to discuss his assertion that sustained Lean success is driven by a handful of critical behaviors by managers at every level of the organization. Here are some of his comments:

Unlike so many management fads (reengineering, quality circles, etc.) that have come and gone over the decades, Lean owes its endurance to the fact that it benefits all stakeholders -- customers, owners/funders, and employees. Waste doesn’t help anyone. Unfortunately, I believe a lot of organizations embark on a Lean expedition underestimating the behavior changes required of managers at every level.

Although important, the ultimate measure of success for any Lean expedition is not how many kaizen events are completed, but rather how many improvements occur outside of formal events. The latter ultimately comes down to creating a place where employees care, where they are willing to expend discretionary effort, and feel competent solving problems and removing waste. Creating that place is almost totally reliant on the behaviors they observe from their leaders day in, day out to ensure:

• Everyone understands the relevance of their work. 
• Employees feel appreciated for who they are as well as what they do. 
• Pathways for growth are evident. 
• Successes (and efforts) are regularly recognized. 
• A fair and responsive system exists for dealing with performance issues when they occur. 

Regardless of what we say, employees believe what we do. So being clear on key behaviors for leader-managers is very important. Ironically, these behaviors are consistent with any excellent supervisor, regardless of whether they are working in a Lean environment where flow and pull are practiced or not. Thus, the word “Lean” in my subtitle is practically superfluous, but these key behaviors are absolutely essential for establishing a Lean culture.

My goal for the book Working Great! is to provide a simple and useful resource for leader-managers, regardless of their level or experience. I hope to take the mystery out of culture by tying it to the behaviors to which they can hold themselves, and each other, accountable.

What do you think of Richard's points? Does the behavior of leadership at your organization reflect the true goal of the Lean initiative?

Lean Initiatives in the Construction Industry -- Can they succeed?

Just this month, Gary Santorella published a new edition of his forward-thinking book, Lean Culture for the Construction Industry: Building Responsible and Committed Project Teams. Much has changed in the construction industry since Gary published the first edition of his book back in 2010, so I contacted him to discuss what he has observed and learned working with professionals in this industry during the past seven years. One of the questions I asked was:“What are the main obstacles to a Lean initiative in a construction environment?” Here is his very candid and insightful answer:

The main obstacle is not an intellectual one, but psychological. In an industry that relies heavily on a multitude of personalities and companies, all of whom have competing interests, there is a natural tendency to resist tools that were developed in a controlled manufacturing environment. When you allow people to talk freely, there is a sense of skepticism that Lean practitioners “just don’t get us or what we do.” And, in many ways, they are right. Many of those trying to implement Lean in the construction industry are a bit tone deaf. They hear resistance as an intellectual challenge, and therefore counter it by generating copious amounts of data, imposing weighty (and sometimes faulty) measurements, and implementing Lean tools in such a way that is cumbersome – all of which only serves to justify the divide.

Given that most Lean practitioners are engineers by training, I understand the inclination to go straight for the analytics rather than attend to interpersonal struggles and issues influencing workplace culture, but in doing so, they ignore the realities of our industry. On any given day, the average Project Manager interacts with scores of individuals, each of whom comes from a variety of different backgrounds. From owners, architects, and city planners, to inspectors, workers and various employees and departments within their own company,  managers in construction, more than any other industry, have to be able to navigate the murky waters of human dynamics and interpersonal politics. That’s not to say that there aren’t ample opportunities for measurement and Lean tool implementation. Pull-planning, Value Stream Mapping, 5S and Kanbans have literally transformed businesses that were bleeding money in the form of waste. We know the flow stoppages that are the result of people choosing to store information idiosyncratically on their personal hard drives rather than using the standard practice of uploading to a common share drive. But when we emphasize data, and measurement, and tools we are taking Lean out of its proper context and missing the most transformative element of Lean – it’s ability to transform a culture.

The construction industry is, unfortunately, fraught with blame, finger-pointing, and self-protective cover-your-butt behaviors. The average Owner-Architect-Contractor meeting is more of an exercise of the fine art of attack and counter attack than productive waste identification and problem solving. Teaching people to use Lean tools in the context of their interactional realities is far more productive than measuring everything. When all of the competing parties understand that there is far more to be gained – financially and psychologically - by viewing problems as opportunities to improve, rather than as weapons, that’s when people start to understand the true power of Lean.

As Lean practitioners, we need be as interested in helping people to embrace the concerns of all of the parties, as we are in implementing the tools. To me, this is the true power of Lean. I love the framework because if implemented properly, it melds process and measurement with the psychological realities of human interest, and embodies the true meaning of the word teamwork by empowering people to change their working environment for the better. It’s exciting and humbling to see people come to the realization that they are far better off as a united whole, than a bunch of separate competing interests who are resigned to doing battle with each other. To me, this is the true power of Lean. The tools should be a means to get there, rather than the end result. 

What do you think of Gary's comments? For those working in the construction industry, do you agree with his observation of behaviors and habits?