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A Framework Analysis for Lean Transformation: A Case Study of a Public Utility in Greece

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Document pages: 20 pages

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.

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