Abstract
Purpose: Nowadays, the worldwide economic recession has created numerous challenges in the Public Sector of Greece, which in turn affect the sustainability of public enterprises. Overall, there is a high pressure to increase productivity and reduce operating costs. The need to adapt to the new environment is pushing public organizations to implement Lean Management strategies in accordance with Private Sector standards. However, the limited budget, public deficits and debts, bureaucratic culture, political dependence and lack of transparency present several issues. These pose a serious threat to successful implementation of Lean practices in the long-run. Lack of relevant research and dichotomous role of public service organizations make this study very interesting. This research paper is aiming at exploring and highlighting the impact of the most important Critical Success Factors (CSFs) for the effective integration of Lean Management principles in Public Utility organizations in Greece by combining bibliographic research and empirical—with the quantitative method-research through case studies. Research Methodology: The research method combines bibliographic research and empirical—with the quantitative method. Quantitative method was employed on a sufficient sample of public employees from two of the largest public companies of Greece: Public Power Corporation (PPC S.A.) and Athens Water Supply and Sewerage Company (EYDAP S.A.) in order to investigate the impact of the most important CSFs on successful Lean Transformation of them. Findings: Quantitative findings from this research illustrated that the most important CSFs that have a positive impact on successful Lean Transformation on Greek public organizations/utilities are: Effective Communication, flexible Organizational Infrastructure, Customer Focus, Linking Lean to Suppliers, Business Plan and Vision, competent Change Management, Top Management Support and Commitment, Training and Education, as well as Selection of Staff. On the contrary, the existence of a bureaucratic Organizational Culture has a negative effect on successful integration of Lean Management. Limitations: Important limitations of this study are the utilization of a convenience sample and the strict focus on Greek public organizations operating in a competitive environment.
Highlights
According to Mc Kinsley study conducted in 974 public organizations, the transformation of the public sector, ascertained that only 39% of the sample adopted the Lean Management practices to a viable level [1]
The present research with the Structural Equation Modeling (SEM) method proves the positive effect of the Critical Success Factors (CSFs) (Management Commitment & Leadership, Training & Education, Selection of Staff) as well as the very positive strong effect of Change Management, and the negative effect of Organizational Culture on Lean Transformation of public enterprises in Greece
On the other hand with Regression Analysis the research confirms that the CSFs that positively influence the Lean Transformation of public companies and lead to long-term success are: 1) Project Communication, 2) the Organizational Infrastructure, 3) the Supplier Focus, 4) the Customer Focus, 5) the Business Plan & Vision, 6) the Change Management, 7) the Management Commitment & Leadership, 8) the Training & Education, and 9) the Selection of Staff while the Organizational Culture has a negative effect
Summary
According to Mc Kinsley study conducted in 974 public organizations, the transformation of the public sector, ascertained that only 39% of the sample adopted the Lean Management practices to a viable level [1]. The issue of saving resources in the public sector has been preoccupying academics for many years, Lean Management constitutes a relevantly current issue, given the continuous technological advancements that constantly modify the implemented practices and strategies [2]. Based on Antony et al [3] every attempt to intergrade the principles of Lean Management must be developed individually depending on the needs of each enterprise and its employees. Though the Lean principles are more or less the same for the entire business sector, each attempt of incorporation is unique and specific for every organization [4]
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