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 related 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.

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

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.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: Obeya

Obeya Case Studies

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

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

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

Obeya Digital Transformation for Global E-commerce Firm

Scenario: The company is a leading e-commerce player experiencing difficulty in maintaining its Obeya—a centralized space for cross-functional teams to collaborate and monitor project progress.

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

Obeya Optimization for Agritech Firm in Sustainable Agriculture

Scenario: An international agritech firm specializing in sustainable agriculture is struggling to maintain the efficacy of its Obeya room.

Read Full Case Study




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials

  •  
    "The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

    – Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)
  •  
    "I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

    – Trevor Booth, Partner, Fast Forward Consulting
  •  
    "My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me "

    – Bill Branson, Founder at Strategic Business Architects
  •  
    "One of the great discoveries that I have made for my business is the Flevy library of training materials.

    As a Lean Transformation Expert, I am always making presentations to clients on a variety of topics: Training, Transformation, Total Productive Maintenance, Culture, Coaching, Tools, Leadership Behavior, etc. Flevy "

    – Ed Kemmerling, Senior Lean Transformation Expert at PMG
  •  
    "FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The "

    – Roderick Cameron, Founding Partner at SGFE Ltd
  •  
    "As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

    The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

    – Dennis Gershowitz, Principal at DG Associates
  •  
    "I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

    – Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
  •  
    "Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I "

    – M. E., Chief Commercial Officer, International Logistics Service Provider



Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.