The Impact of Lean Transformation on the Organizational Performance: The Case of Public Utilities in Greece

Abstract

Purpose: Lean Management concerns a strategy or philosophy aiming at saving resource practices and curtailment of public expenses, with ultimate objective of the enhancement of the organizational performance. By extension, the successful integration of the Lean Management leads to positive organizational results, such as higher quality, along with improved financial, environmental and business market performance. Although a lot of studies related to the effect of Lean production on the organizational performance have been conducted, empirical findings that examine the case of the public sector are absent. Additionally, there is no precise mechanism through which the Lean Management determines the organizational performance of the public utility companies. The above mentioned research gap is examined with this research, given that it investigates the influence of the Successful Lean Management on the Organizational Performance (Environmental Performance, Financial Performance, Business Performance) in public utilities in Greece. Research Methodology: The research method combines bibliographic research and empirical—with quantitative method—through a case study. More specifically, via quantitative approach, which was based on sample research with standardized questionnaire, performed in two of the biggest and most important public utilities in Greece, the Public Power Corporation S.A. (PPC S.A.) and the Athens Water Supply and Sewerage Company (EYDAP S.A). Findings: Quantitative findings from this illustrated that the successful transformation towards the Lean principles/saving resources affects positively the Business Market Performance, the Environmental and the Financial Performance. Limitations: Main restrictions of the current study are the capitalization of random sample and the strict focus on Greek public utilities that function under conditions of competition. Consequently, whichever generalizations for the whole Public Sector as well as for businesses of the private sector it would be better to be avoided, as they differ concerning their structural and functional features and their organizational culture.