What is the Kaizen method and how to apply it to your business

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There are numerous business methodologies and philosophies applied in companies, but one of the most notable and oldest is the Kaizen method .

In this article, we will explore this method, from its definition and origin to its applicability for companies, particularly with regard to accounting.

What is the Kaizen method?
Kaizen emerged in Japan following the end of World War II, when the United States sent specialists to revitalize Japanese industry due to the impact of the war on that country. This initiative led to the creation of so-called quality control circles, groups of employees dedicated to improving internal production processes, which eventually led to the creation of Kaizen.

"Kaizen", the Japanese term for "change for the better", is a methodology iceland whatsapp number database on continuous improvement, in which all stakeholders in a given process participate in improving it, for example, by immediately identifying and correcting problems in the production system. Therefore, it is not an initiative solely by the company's management, but rather something that all employees practice.

In general, the Kaizen method is applied as follows:

A certain operation or activity is standardized so that it can be easily replicated in concrete steps;
This operation/activity is measured in its execution to evaluate its performance and identify opportunities for improvement;
The collected data is compared with the intended requirements;
Improvements and innovations are applied to meet requirements and increase productivity;
Improvements and innovations are standardized in a new operation;
The process is repeated continuously.
Benefits of Kaizen
Kaizen brings numerous benefits to companies and their employees, including:

Reduction of operating costs;
Reduction in waste of resources and time;
Increased employee motivation and involvement;
Simplification and automation of processes that do not require as much human intervention;
Identification of errors and failures in processes for rapid remediation;
Increased productivity of the company and the employee.
Difficulties of Kaizen
Despite its advantages, Kaizen also brings some difficulties inherent to its implementation, namely:

It requires a strong change of mindset from both management and employees, which may encounter a lot of resistance;
It requires greater autonomy from all employees, which can be resisted by micromanagement on the part of management and/or by a lack of desire for autonomy on the part of the employee;
It requires openness on all fronts to review processes and make changes;
Requires operational agility to quickly implement necessary corrections and improvements;
It requires a continuous and unwavering commitment to the methodology to have a drastic effect in the long term.
How to apply the Kaizen method in accounting?
Like other functional areas of a company, accounting is made up of a series of processes that can be improved, so the Kaizen method can also be applied here to increase productivity.

To begin with, Kaizen is designed to be applied as a group, not individually; as such, to apply this methodology in accounting, accounting cannot be seen as isolated acts done individually, but as a collaborative process in which several participants work together .

Next, it is necessary to standardize internal processes so that they can be monitored, analyzed and improved. Once again, this involves the entire accounting team working together in a measurable way, with performance indicators that allow not only to understand the current state of the processes, but also to define objectives to be achieved.

It is essential that you train your employees in the Kaizen method so that they can actively participate in improving processes , identifying opportunities to reduce waste (of time or money) and increase productivity, through process simplification, innovation and implementation of new technologies, among others. Remember that the Kaizen methodology does not come from above; it comes directly from the suggestions of your employees who work with the processes in question on a daily basis.

As a common example of a Kaizen improvement that most companies can apply to their accounting, if you still use paper invoicing, you can drastically reduce costs and simplify many processes through electronic invoicing .

Kaizen Method for Accounting Offices
For accounting firms, the Kaizen method is also applicable to many client-facing functions. By measuring processes, it will be possible to identify opportunities for improvement and cost reduction; for example, reducing printing and mailing costs by replacing paper documents with digital versions, or reducing the time spent in meetings through a collaborative accounting platform.

Continuous improvement of accounting processes is possible
All companies are looking to improve their processes and increase their productivity. Fortunately, there is a tool that not only indirectly helps in the implementation of the Kaizen methodology, but also itself corrects many of the problems inherent in management and accounting in organizations.