Lean service: a contingency perspective

Abstract

AbstractMany firms launch consolidated lean initiatives across all their service units, but because services differ, mandated lean practices may have a poor fit with the receiving unit. Whereas plenty of research has investigated the fit of lean implementation at the service industry level, this is the first to delineate how standard lean service practices fit different service types. Taking a contingency theory perspective, we study a leading European utility company comprising distinct service types. Using purposeful sampling, we interview 36 employees from 15 different teams representing three different service types – professional services, service factories and service shops – and 11 employees from the headquarters who are supporting these units in their lean transformation journeys. We also collect secondary data, including lean programme documentation and audit data. We find that one size does not fit all for lean service; there are important nuances to the relevance of standard lean service practices across different service types. Ten propositions are put forward suggesting how standard lean practices need to be adapted to fit the context of different service types. The findings reject the idea that all service units can progress along the same trajectory in lean service programmes. This paper informs managers how lean service programmes can be tailored to increase the fit with different service types.