Continuous Improvement: The Simple Philosophy That Can Help Your Business Thrive

Continuous Improvement, The 1% rule, or Marginal Gains, whatever terminology you want to call it, they are all similar in philosophy and application. It is the idea of focusing on small incremental improvements to grow your business easily. The most successful businesses are always striving to improve to stay ahead of their competition.

In this blog I’ll explain how the philosophy of small incremental improvements can improve your business. This is a technique that many successful companies use in addition to Lean Thinking – a company’s philosophy of eliminating waste. It has been used for decades and can be found in micro businesses right through to corporate business models across industry and service sectors.

I’ve been a lean Sensei for 25+ years and implemented these small incremental changes in Hairdressers to Big Corporate Manufacturers. By implementing these marginal gains, it’s possible to make a huge impact on the performance of your company in a relatively short period of time. It’s Simple! and the data has proven time and time again that this method works!

You CAN NOT ignore the role of Continuous Improvement in business – and here’s why.

What is Continuous Improvement?

“Be Better Today Than You Were Yesterday, Plan To Be Better Tomorrow Than You Are Today” is a quote I have lived by for 25+ years of my working career.

The 1% Rule is a relatively new contender but has now become a business management philosophy that states that you should focus on improving your product or service by at least 1% every day. It was developed by Sir Dave Brailsford, former performance director of British Cycling, and used as a means to achieve micro improvement in the British Cycling Team. The concept behind the 1% rule is simple: if you focus on small improvements, you can achieve significant results over time.

The concept of the 1% rule in my opinion is based on Kaizen, which is Japanese for “continuous improvement.” Kaizen was first introduced to the Western World in the 1970s by Toyota, who taught that companies should embrace a culture of continuous improvement rather than trying to maximise efficiency one big hit at a time. Kaizen aims to reduce inefficiency in its 3 major forms. These are muda (waste), muri (overburdening work), and mura (inconsistency of work).

When we look at these strategies, we can see how the power of tiny gains really makes a difference.

1% Improvement Every Day 1.01365 = 37.78%

1% Decline Every Day 0.99365 = 0.03%

How does the Continuous Improvement work in business?

The PDCA Cycle, also known as the Plan-Do-Check-Act Cycle, is a model for continuous improvement that uses four phases to drive process changes through the organisation. This linked to the 3 forms of in-efficiency, muda (waste), muri (overburdening work), and mura (inconsistency of work) gives a superb structure and focus for all employees.

The PDCA Cycle Explained:

Plan: In this phase, you identify a problem or opportunity for improvement. You also create a plan for how to solve the problem or capitalise on the opportunity.

Do: In this phase, you carry out your plan and implement your solution.

Check: In this phase, you review your work to see if it was successful in achieving its objectives and if there are any unintended consequences of your actions.

Act: In this phase, you make adjustments based on what you learned in the check phase and continue with another iteration of the cycle to drive continuous improvement.

By continuously improving your processes, your organisation can achieve higher levels of performance at lower cost. This not only improves customer satisfaction but also helps an organisation achieve its goals faster.

The key to this and building on the marginal gains is to empower everyone to make these short, sharp improvement cycles small enough to be managed at a local level. This will enable them to use their creativity and judgment to find the most effective solution for their teams and customers.

The second aspect of this is that the improvements have to be visible and celebrated. This is not just about being proud of what you have achieved, but also about helping others see what you have done. This creates an environment where people are constantly looking for new ways to improve, which in turn leads to innovation.

The third aspect is that it has to be built into every process in a business. You cannot expect people just to do it because you asked them to – they need processes that encourage continuous improvement across everything they do from how they order stock through the distribution system all the way through customer support.

Why use the Continuous Improvement?

Continuous improvement is a process that can be used in every business setting of all sizes and all sectors, from small businesses to large corporations.

It’s Good for Business

The benefits of continuous improvement can be seen throughout the business world. By using this approach, companies are able to stay competitive while providing better quality products and services at lower prices. This helps them grow their customer base while increasing their profit margin through increased sales volume.

It’s Good for Employees

Continuous improvement is also good for employees because it provides them with job security. If you have implemented a continuous improvement program in your company, then you have created an environment where everyone is constantly making improvements which makes your company more competitive in the marketplace and less likely to be outsourced in favour of cheaper labour costs elsewhere.

  • People feel empowered because they have more opportunities for growth and development.
  • Employees feel more engaged because they feel like their work matters and makes a difference.
  • The company attracts better talent because employees want to work for companies that are doing great things for their customers.

Does Continuous Improvement really work?

Yes! Continuous Improvement absolutely works!

I’ve implemented and completed Lean Thinking and Continuous Improvement Projects in 100+ businesses over my career and have no doubt on the impact it can make.

On my very first project back in the 1990’s we took a machine change over from 480 mins to sub 20 mins, saving a £250K capital expenditure. As Senior Exec I’ve saved £10m+ year on year through the implementation of Continuous Improvement. I’ve seen every employee within a business take pride in completing numerous small incremental changes that compound in delivering a huge result.

In order to achieve these results, you need to be prepared to put in the work. It’s not an overnight process—it takes patience as well as an unwavering commitment to creating positive change at every level of your organisation. But once you’ve seen the first results, you’ll find it’s worth every minute invested!

You’ve only got to read some of our Case Studies to realise the potential.

Takeaway: Challenging yourself and your employees to make small improvements every day can have a dramatic effect on your overall business growth.

Why Standardised Work Isn’t Boring (And Why It’s The Secret Weapon You’re Ignoring)

Right, let’s talk about something that, on the surface, sounds about as exciting as watching paint dry. Standardised work. I know, I know. The phrase itself probably conjures up images of old black and white factory footage, rows of identical workers doing identical tasks with robotic precision. It feels rigid, a bit soul crushing, and completely at odds with the dynamic, creative, and, let’s be honest, slightly chaotic way most of our businesses actually run.

And that’s the problem right there. It’s one of the most powerful, transformative tools in the entire lean manufacturing playbook, yet it remains one of the least understood and least used. Why? Because we’ve completely misunderstood what it’s for.

From my own experience working with countless teams, I can tell you this with absolute certainty: without standards, you do not have continuous improvement. What you have is chaos. You have firefighting. You have good days and bad days that you can’t quite explain. You have a constant, draining variability that makes progress feel like guesswork.

I’ve heard all the rebuttals, and I’m sure you have too. They usually come from very smart, passionate people who genuinely believe their work is different.

“We don’t make cars, you know.”

“You see, our process is creative. It can’t be standardised.”

“We’re unique… this isn’t an assembly line!”

And I get it, I really do. The objection comes from a good place, a desire to protect the craft, the human element, the spark of ingenuity that makes their work special. But here’s the thing I always say in response. Everyone, and I mean everyone, works a process. That process, whether you’re designing a marketing campaign, admitting a patient to a hospital, writing code, or yes, building a car, can only be doing one of two things. It’s either creating value for your customer, or it’s destroying it. Which would you rather it be?

It doesn’t matter if you’re delivering lifesaving patient care or assembling a gearbox. The end result relies on a sequence of highly coordinated tasks and processes. When you find a way to standardise the best-known method for that sequence, you’re not killing creativity. You’re clearing the path for it. You are beginning the journey of fundamentally improving your work and eliminating the significant, often hidden, sources of waste that frustrate your team and disappoint your customers.

The Great Misunderstanding: “But Our Work is Special”

Let’s dig into that pushback a little more, because it’s the single biggest barrier to getting started. The idea that standardisation is only for the factory floor is a myth, but it’s a persistent one.

Imagine the head of a busy A&E department. Their environment is the definition of unpredictable. Every case is different, every patient unique. The idea of a “standard” way of working seems almost insulting to the skill and judgement of the doctors and nurses. But think about the process of triage. Is there a standard set of questions to ask to assess urgency? Is there a standard procedure for checking vital signs? A standard location for the crash cart? Of course there is. These standards don’t restrict a doctor’s ability to make a complex diagnosis. They do the opposite. They handle the repeatable, critical basics flawlessly every single time, freeing up the doctor’s mental energy to focus on the difficult, unique aspects of the patient’s condition. Without those standards, you get chaos, missed steps, and potentially tragic errors.

Or what about a team of software developers? They’re the epitome of modern knowledge work. Their job is to solve complex problems with elegant code. You can’t standardise creativity, right? Well, no, you can’t standardise the moment of inspiration. But you can absolutely standardise the process around it. How does the team handle bug reports? Is there a standard way to test new code before it’s deployed? A standard checklist for releasing an update to prevent servers from crashing at 2 a.m.? These standards don’t tell a developer how to write a brilliant algorithm. They create a stable, predictable framework so that their brilliant algorithm can be delivered to users reliably and without causing new problems. They prevent the team from constantly reinventing the wheel on routine tasks.

The truth is, every job has elements that are repeatable. Standardised work isn’t about the whole job; it’s about those repeatable parts. It’s about agreeing, as a team, on the best way we currently know how to do a specific task. By doing this, we create a baseline. A stable foundation. And you cannot improve something that isn’t stable. Trying to improve a chaotic process is like trying to measure a moving object with a ruler made of elastic. The data you get is meaningless.

So, the next time you hear “we’re different,” the answer isn’t to argue. It’s to ask a different question. “What parts of our work are repeatable? And for those parts, have we agreed on the best way to do them?” The conversation that follows is often the first real step toward meaningful improvement.

So, What Is It, Really?

At its heart, standardised work is incredibly simple. It’s the documented, current, best practice for completing a task. It’s a living document that captures the most efficient and effective way we know right now to get a job done to the highest quality. The goal is to ensure that the same results are achieved, in roughly the same amount of time, with the same level of safety and quality, regardless of who on the team completes the task.

The key word in that definition is current. This is not about carving a process into stone tablets to be handed down from on high. It’s not a rigid, top-down procedure manual that gets written once and then gathers dust in a forgotten folder on the company server. To be honest, that kind of documentation is worse than useless; it breeds cynicism.

Standardised work is the opposite of that. It’s a tool for the people actually doing the work. It’s a dynamic agreement, a hypothesis that says, “Based on everything we know today, this is the best way to do this.” And tomorrow, we might find a better way. When we do, we test it, prove it, and then we update the standard. It’s the engine of kaizen, or continuous improvement.

Think of it like a professional chef’s recipe. A Michelin starred chef has a precise, documented recipe for their signature dish. Every ingredient is measured, every step timed, every technique specified. This doesn’t stifle their creativity. It ensures that every customer who orders that dish gets the same brilliant experience. The standard recipe is the foundation. It’s what allows the kitchen brigade to perform flawlessly under pressure. The creativity happened when the chef was developing the recipe, experimenting with ingredients and techniques. And if they discover a better way to sear the scallops or a new spice for the sauce, they don’t just do it randomly. They test it, perfect it, and then they update the master recipe. They change the standard.

That is what we’re aiming for. A clear, agreed upon method that removes ambiguity and inconsistency from our routine tasks, freeing up our minds to focus on the real problems and the next improvement.

The Building Blocks of a Good Standard H2

While the specific document might look different in an office versus on a factory floor, the core principles and key elements remain remarkably consistent. To build effective standardised work, you generally need to understand three key components.

Standard Work Elements

1. Takt Time

This is a concept that often gets confused with cycle time, but they are very different things. “Takt” is a German word, and it means beat, or rhythm, like the baton of a conductor keeping an orchestra in time. In a business context, Takt time is the rhythm of your customer demand. It’s the rate at which you need to complete a product or a service to keep up with what your customers are asking for.

The calculation is simple:
Takt Time = Your Available Production Time per Day / Your Customer Demand per Day

Let’s use a non-manufacturing example. Imagine a mortgage processing team that has 420 minutes of available work time in a day (after breaks and meetings). The company receives, on average, 70 mortgage applications per day that need to be processed.

Takt Time = 420 minutes / 70 applications = 6 minutes per application.

This number is profound. It’s the heartbeat of the operation. It tells the team that to meet customer demand, one completed application needs to roll off their production line, so to speak, every six minutes. It’s not about how long it actually takes to do the work (that’s cycle time). It’s about the pace required to satisfy the market. Understanding Takt time helps you design your processes. If the team’s current process takes 10 minutes, you immediately know you have a problem. You can see the gap between your capability and your customer’s expectation, and that’s where your improvement efforts should focus. It prevents overproduction (working faster than needed, which builds up inventory and waste) and underproduction (working too slow, which leads to backlogs and unhappy customers).

2. Work Sequence

This is the most straightforward part. As the great Taiichi Ohno of Toyota put it, it is “The time for an employee to do a prescribed task and return to his original stance.” It is the actual step by step sequence of actions that a person performs to complete one cycle of their work within the Takt time.

A good work sequence is clear, logical, and focuses on the most efficient path of action. It’s not a dense paragraph of text. It’s usually a numbered list, often accompanied by pictures or diagrams, that breaks the task down into its core elements. What is the first thing you do? What is the second? Where do you get your materials from? What tool do you use? It captures the how of the job in a way that is easy for anyone to follow. This ensures that everyone is following the same best practice, which is the key to reducing variation and defects.

3. Standard Inventory

This third element is often overlooked, especially in service or office environments. In manufacturing, it’s easy to understand. It refers to the minimum number of parts or materials needed at a workstation to complete the work smoothly without interruption. You need enough to keep working, but not so much that you’re creating clutter and excess inventory.

In other sectors, the “inventory” might be different, but the principle is the same. For a software developer, it could be the number of open tasks in their “to do” column. Too few and they risk being idle; too many and they suffer from context switching and an overwhelming workload. For a call centre agent, it might be the number of reference documents they need open on their screen to answer customer queries effectively. For a doctor, it could be the standard number of patient files to have ready for their next appointments.

Standard inventory is about defining the minimum resources necessary to perform the job according to the standard work sequence and within the Takt time. It’s about ensuring the process flows without hiccups or delays caused by searching for information, tools, or materials.

Putting It All Into Practice: A Few Ground Rules

Knowing the theory is one thing, but actually creating and sustaining a culture of standardised work is another. It requires a thoughtful, human centred approach. Here are a few things to bear in mind.

First, and most importantly, involve the employees. The people who do the work every day are the experts. A manager sitting in an office trying to write a standard for a task they haven’t performed in years is a recipe for disaster. The standard will be wrong, and the team will resent it and ignore it. The best standards are created when a leader facilitates a conversation with the team, at the place where the work is done. You observe the process together, you time the different steps, and you collectively agree on what the current best practice is. This builds ownership and engagement. When the team creates the standard, they are far more likely to adhere to it and, even better, to improve it.

Focus on the gritty details. A standard that is too high level is useless. Its purpose is to reduce variation, and variation lives in the details. You need to capture the little nuances, the “tricks of the trade.” I remember working with one process where an associate had to physically lean on one part to get another part to fit correctly. A slight tolerance stack up in the components meant it was the only way. This “knack” had to be written into the standard work. Now, was that the long-term solution? Of course not. But documenting it made the problem visible to everyone, including the engineers. It quantified the issue. Imagine the lost time and production if a new person started, wasn’t told about the trick, and spent hours struggling. By documenting the knack, we created a temporary standard while a permanent engineering solution was developed to fix the root cause. Without that detail, the problem remains hidden in tribal knowledge.

Use visuals whenever you can. Our brains are wired to process images far more quickly and effectively than text. A single photograph with a few key annotations can convey more than a full page of written instructions. Use diagrams, photos, examples, and even colour coding to bring your standard work to life. A picture really is worth a thousand words, and it helps overcome language barriers and differences in reading comprehension. The goal is instant clarity.

Make it accessible. This seems obvious, but it’s a common failure point. The documentation is no good if it’s locked in a filing cabinet or buried in a complex server directory. The standard work needs to be available at the point and time that the work is actually being performed. Laminated sheets at the workstation, a monitor displaying the steps, a tablet with the instructions readily available. If a team member has to walk away from their work area to find out how to do their job, the system has failed.

Finally, build a system to innovate. This is the crucial point that prevents standardisation from becoming stagnation. While you don’t want employees deviating from the standard work on a whim, you absolutely must have a clear and simple process for them to suggest improvements. When someone has a new idea, a better way, there needs to be a method to consider it. This is often handled through a governance process or a kaizen suggestion system. It allows the new idea to be tested, analysed, and, if it proves to be better, for it to be approved and rolled out as the new standard for everyone. This creates a positive feedback loop. It tells the team, “We value your expertise, and we want your ideas.” The standard isn’t a cage; it’s simply the starting line for the next improvement.

Standardised work isn’t the most glamorous tool. It doesn’t have the futuristic appeal of AI or automation. But it is, without a doubt, the bedrock of operational excellence. It’s about creating stability in a chaotic world. It’s about respecting the people who do the work by capturing their collective knowledge. And most of all, it’s about building a solid foundation, a floor from which your entire team can rise, together, to new levels of performance. It’s time we stopped dismissing it and started seeing it for what it truly is: the starting point of all meaningful improvement.

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