If your Lean transformation feels like it's stuck, your compensation system might be part of the problem. In this episode, Mark tackles a question from Finland about how incentives influence behavior, often in ways that completely undercut Lean principles.

He shares how traditional pay structures and metrics, especially those tied to cost and output, often reward the wrong actions. You'll hear examples from the shop floor to the C-suite, including a mining company that saved money on parts but paid the price in lost production.

Mark draws on his experience leading the Danaher Business System to explain why companies need to rethink how they measure success. He breaks down what a healthy compensation structure looks like in a Lean environment, how to align cross-functional teams around shared goals, and why hitting 75 percent of a breakthrough can be a win worth celebrating.

This episode speaks to anyone who’s trying to make Lean work while fighting against legacy incentive systems. Mark offers a grounded look at how misaligned rewards can quietly unravel even the best improvement efforts, and what it takes to turn that around.

Mark DeLuzio discusses the intangibles that made all the difference to the success of the Danaher Business System. He also discussed the main ingredients of DBS, the 5Ps: Purpose, Principles, People, Plan, Process.

Some metrics were never meant to survive in a Lean world. OEE and absorption accounting might sound smart on paper, but they push the exact behaviors that wreck flow, bury quality issues, and inflate inventory. The result? A system that looks efficient but delivers chaos.

Mark DeLuzio breaks down how these outdated measures keep companies locked in batch production and bad habits. He shares firsthand stories from the factory floor and the boardroom, including a jaw-dropping moment with a CFO who learned the hard way that ROI is not a reason to keep machines running at all costs.

This episode is for anyone tired of playing metric games that look good in reports but hurt performance where it matters. If you’ve struggled to explain why certain KPIs feel off in a Lean environment, you’ll walk away with clear examples and a smarter alternative to measure what actually matters.