I’ve been following Mark DeLuzio on LinkedIn for a while. He’s a Lean legend, and as a passionate advocate for Lean myself, I’m always looking for ways to boost efficiency and streamline processes. Mark frequently talks about Kaizen, the practice of continuous improvement, and how essential it is to examine and refine our processes regularly.
I completely agree, and given my deep family ties to Japan, I feel compelled to explore the true meaning and origins of Kaizen.
A Personal Connection to Japan and Kaizen
My great-great-grandfather spent much of his life in Japan. A fascinating book, Verbeck of Japan, written in 1900, details his work and influence there. Recently, I used AI to summarize the book in a modern writing style, making it much shorter and much easier to read. (The photo is my great-great-grandfather and great-grandfather with young students, including the Emperor Meiji.)
Since I have this connection to Japan, I felt compelled to look deeper into the origins of Kaizen (改善) and its true meaning:
- 改 (Kai): “Change” or “improvement.”
- 善 (Zen): “Good” or “better.”
Together, Kaizen (改善) translates to “improvement” or “making things better.” In business and personal development, it’s often interpreted as “continuous improvement”—the mindset of consistently refining processes to drive better outcomes.
How Kaizen Became a U.S. Business Term
To be honest, I’ve never liked using less-familiar terms when a good English equivalent exists. But Kaizen is an exception. This word has taken on a life of its own in the world of U.S. business, and for good reason.
Kaizen’s rise to prominence in the U.S. began with Toyota’s manufacturing success in the 1980s. American businesses, eager to replicate Toyota’s process-driven success, adopted the term through the study of Lean Manufacturing. What started in the factory soon evolved, spreading into broader realms like business management, finance, and even personal development. Now, Kaizen is so ingrained in U.S. business culture that it’s hard to imagine a corporate world without it.
Even though Kaizen essentially means “continuous improvement,” the term embodies a deeper, more systematic philosophy that English alternatives like “process improvement” simply don’t convey. That’s why it resonates so deeply and has stuck.
Applying Kaizen in SMB Finance and Operations
At my CFO services firm, we live and breathe Kaizen, constantly refining financial systems and processes for small and mid-sized businesses. Whether we’re streamlining financial reporting, optimizing cash flow, or strengthening internal controls, the objective is always clear: eliminate inefficiencies and create more value.
I recently came across a YouTube video that humorously explains how to make a peanut butter sandwich—yet it highlights a very real business challenge: the difficulty of documenting and transitioning processes. One of the biggest problems I see? Inconsistency.
The first—and most critical—step in improving any process is ensuring it’s executed the same way every time. Without consistency, improvement is impossible.
Real-World Kaizen: Fixing a Broken Back-Office Process
We recently onboarded a new client, and it didn’t take long to uncover a glaring issue: their back-office financial processes were completely chaotic.
- No documentation.
- No standardized workflows.
- Different employees were handling things in different ways.
The result? A perfect storm of inefficiencies, confusion, and costly financial blind spots.
To turn this around, we applied a Value Stream Mapping approach to thoroughly analyze their entire cash-to-cash process—everything from revenue collection to vendor payments. By pinpointing bottlenecks and eliminating unnecessary steps, we created a more streamlined, repeatable system that not only boosted efficiency but also minimized errors. This is Kaizen in action—turning chaos into control, one step at a time.
Kaizen is a Mindset, Not Just a Process
Kaizen is more than just a one-time fix—it’s a mindset, a commitment to ongoing refinement and improvement in every aspect of your business. Whether you’re in manufacturing, finance, or leadership, the core principles remain the same:
- Standardize first. Establish consistency in your processes.
- Measure and analyze. Identify inefficiencies and areas for improvement.
- Improve and refine. Eliminate bottlenecks, cut waste, and optimize workflows.
- Repeat continuously. Remember, improvement is a never-ending journey.
At Verbeck Associates, we apply this approach to every client, ensuring their financial systems aren’t just “good enough” but are efficient, scalable, and continuously improving.
So, how are you applying Kaizen in your business? Let’s connect and discuss how we can help you create leaner, more efficient processes for lasting success.