Flevy Management Insights Q&A

In what ways can Obeya be tailored to fit non-manufacturing sectors such as services or technology?

     Joseph Robinson    |    Obeya


This article provides a detailed response to: In what ways can Obeya be tailored to fit non-manufacturing sectors such as services or technology? For a comprehensive understanding of Obeya, we also include relevant case studies for further reading and links to Obeya best practice resources.

TLDR Adapting Obeya for non-manufacturing sectors involves tailoring its focus on collaboration, transparency, and agility to improve decision-making, operational efficiency, and innovation in service and technology organizations.

Reading time: 4 minutes

Before we begin, let's review some important management concepts, as they relate to this question.

What does Collaboration and Cross-Functional Teams mean?
What does Visual Management mean?
What does Agility in Project Management mean?


Obeya, originally a concept from Lean Manufacturing, is a physical or virtual space where strategy meets execution. The term, which translates to "big room" in Japanese, is a place where teams can collaborate, visualize work, and track progress against goals. While it has its roots in the manufacturing sector, the principles of Obeya can be effectively adapted to benefit organizations in the services or technology sectors. This adaptation involves focusing on collaboration, transparency, and agility to enhance decision-making and performance.

Adapting Obeya for Service Organizations

In service organizations, where the delivery of intangible products is the norm, the application of Obeya can significantly improve project management, customer service, and operational efficiency. The first step in tailoring Obeya for these sectors is to redefine the physical or virtual space to focus on the customer journey and service delivery processes. This might involve visualizing key service delivery metrics, customer feedback, and project timelines on the walls of the Obeya room or an equivalent digital platform. For example, a financial services firm could use Obeya principles to streamline mortgage processing by visually tracking each step of the customer journey, from application to closing, thereby identifying and addressing bottlenecks in real-time.

Secondly, service organizations can benefit from using Obeya to foster cross-functional collaboration. By bringing together representatives from sales, customer service, operations, and finance in a single space, organizations can ensure that all departments are aligned with the service delivery goals. This alignment is crucial for responding swiftly to customer needs and market changes. Accenture's research on cross-functional teams highlights that companies with highly collaborative teams see improved performance and customer satisfaction levels. In this context, Obeya serves as the physical or virtual venue that facilitates this collaboration.

Finally, the emphasis on visual management within Obeya can help service organizations enhance transparency and accountability. By making key performance indicators (KPIs), customer feedback, and progress against targets visible to all team members, organizations can foster a culture of continuous improvement. This approach not only helps in identifying issues early but also in celebrating successes, thereby boosting team morale. For instance, a healthcare provider implementing Obeya could display patient satisfaction scores and wait times, making it easier to spot trends and implement corrective actions.

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Implementing Obeya in Technology Firms

Technology firms, characterized by their fast-paced and innovative environments, can leverage Obeya to accelerate product development and enhance collaboration. The first step in adapting Obeya for technology firms is to focus on the product development lifecycle. This involves visualizing the stages of development, from ideation to launch, and tracking key milestones. By doing so, teams can maintain a clear focus on priorities and deadlines, facilitating a more agile development process. Google, for example, uses similar principles in its war rooms, where cross-functional teams collaborate closely on projects, with all project information visually displayed to enhance decision-making and teamwork.

Moreover, technology firms can use Obeya to foster a culture of innovation. By dedicating spaces within the Obeya room for brainstorming and creative thinking, organizations can encourage team members to propose and visualize new ideas. This setup supports a fail-fast mentality, where ideas are quickly prototyped, tested, and either developed or discarded based on feedback. Bain & Company's insights on innovation stress the importance of rapid iteration and cross-functional collaboration in driving technological breakthroughs.

Lastly, Obeya can be instrumental in managing complex, multi-stakeholder projects typical in the technology sector. By visualizing project timelines, dependencies, and risks, teams can anticipate challenges and adjust plans proactively. This level of project transparency and control is crucial for technology firms, where delays can significantly impact market competitiveness. For instance, a software development company might use Obeya to coordinate the launch of a new application, ensuring that marketing, development, and customer support teams are synchronized in their efforts.

Implementing Obeya in non-manufacturing sectors such as services or technology requires a thoughtful adaptation of its principles to the unique challenges and dynamics of these fields. By focusing on customer journeys, cross-functional collaboration, and visual management, organizations can harness the power of Obeya to drive strategic alignment, operational efficiency, and innovation. As with any management practice, the key to success lies in customizing the approach to fit the organization's culture, goals, and needs.

Best Practices in Obeya

Here are best practices relevant to Obeya from the Flevy Marketplace. View all our Obeya materials here.

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Explore all of our best practices in: Obeya

Obeya Case Studies

For a practical understanding of Obeya, take a look at these case studies.

Obeya Optimization for Construction Management

Scenario: The organization is a mid-sized construction company specializing in commercial real estate projects.

Read Full Case Study

Obeya Implementation and Improvement for a Global Technology Company

Scenario: A multinational technology company is struggling with the implementation and optimization of its Obeya.

Read Full Case Study

Transforming Animal Production: Overcoming Operational Inefficiencies with Obeya Strategy

Scenario: A mid-size animal production company implemented an Obeya-based strategic framework to address significant operational inefficiencies.

Read Full Case Study

Operational Excellence for Semiconductor Manufacturer in High-Tech Industry

Scenario: The semiconductor manufacturer is grappling with the challenge of integrating an Obeya approach to enhance cross-functional collaboration and decision-making speed.

Read Full Case Study

Operational Excellence for Maritime Shipping Firm in Asia-Pacific

Scenario: A maritime shipping company in the Asia-Pacific region is struggling with its Obeya room efficiency.

Read Full Case Study

AgriTech Operational Excellence Initiative in Precision Farming

Scenario: The organization is a leader in the precision agriculture industry, leveraging advanced technologies to increase crop yield and optimize resource use.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

What are the common pitfalls or challenges organizations face when implementing Obeya, and how can they be overcome?
Implementing Obeya faces challenges like lack of understanding and commitment, physical and technological barriers, and integration with existing processes, which can be overcome by leadership buy-in, leveraging digital tools for virtual collaboration, and aligning with organizational goals and workflows. [Read full explanation]
What metrics or KPIs are most effective for measuring the success of an Obeya implementation?
Maximize Operational Excellence with Obeya: Measure success through Project Completion Time, Budget Adherence, Quality of Deliverables, Cycle Time reduction, and enhanced Stakeholder Satisfaction for strategic business transformation. [Read full explanation]
How does Obeya adapt to remote or hybrid work environments, ensuring inclusivity and effectiveness?
Adapting Obeya for remote and hybrid work involves leveraging digital tools for collaboration, maintaining inclusivity through structured virtual meetings, and integrating Lean Management principles for operational excellence. [Read full explanation]
How is artificial intelligence being integrated into Obeya rooms to enhance decision-making processes?
AI integration into Obeya rooms is transforming decision-making by improving Strategic Planning, Operational Excellence, and Risk Management with advanced analytics, predictive insights, and real-time data interpretation. [Read full explanation]
How does the role of leadership change in an organization that adopts Obeya principles?
Adopting Obeya principles transforms leadership roles from command-and-control to facilitative, emphasizing Collaboration, Continuous Improvement, Transparency, and Accountability, fostering a culture of Innovation and Operational Excellence. [Read full explanation]
What emerging technologies are shaping the future of Obeya rooms and their functionalities?
Emerging technologies like AR, VR, Advanced Data Analytics, AI, and improved Collaboration and Communication Technologies are transforming Obeya rooms into dynamic, efficient tools for Strategic Planning and Project Management. [Read full explanation]

 
Joseph Robinson, New York

Operational Excellence, Management Consulting

This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

It is licensed under CC BY 4.0. You're free to share and adapt with attribution. To cite this article, please use:

Source: "In what ways can Obeya be tailored to fit non-manufacturing sectors such as services or technology?," Flevy Management Insights, Joseph Robinson, 2025




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