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Last update: July 2003
A quarterly publication of Iowa State University Extension
LEAN philosophy works for financial management
Being “lean,” in management terms, means to
be thrifty and economical, removing the waste. LEAN enterprise philosophy
is a business method that produces more with existing resources by eliminating
non-value-added activities. It’s a philosophy that the Iowa
Manufacturing Extension Partnership (IMEP) strongly advocates.
With assistance from IMEP, Iowa’s leading manufacturers have used
LEAN to become successful global competitors, said Willem Bakker, IMEP
director. “Iowa’s future competitive advantage includes becoming
one of the most productive states in all economic sectors.”
Now this LEAN philosophy is being applied to personal financial management
for employees.
Research and analysis of financial attitudes and behaviors is at the
heart of Tahira Hira’s ISU career. An assistant to ISU’s president,
Hira recently completed a three-year national study on the personal financial
practices, feelings and knowledge of workers, as well as their participation
in and management of employee benefits and related feelings about their
employers.
“The data indicate that people with the knowledge and skills to
efficiently use their resources improve not only their financial health,
but their physical and emotional health, which has a great impact on their
productivity as employees,” Hira said.
A conversation between Hira and Bakker soon turned into a proposal for
applying the principles of LEAN to personal financial management and creating
a curriculum that employers could offer as an employee benefit, as well
as reinforce LEAN thinking on the job.
Paragon International, one manufacturer where the LEAN personal financial
management curriculum has been piloted, is a long-time user of LEAN enterprise
in the workplace.
“All the employees that participated in the financial management training learned something that they hadn’t expected to learn and so did I,” said Margaret Wilson, president of Paragon International. “Everyone wins with this training. Employees benefit from the sound personal financial management knowledge. The manufacturer benefits by getting that LEAN knowledge applied in the work setting.”