Tips for Lean Managers

Kaizen vs. Kaikaku

Avatar photo By Jon Miller Updated on August 23rd, 2023

While “kaizen” has been a familiar term in English management vocabulary for decades, “kaikaku” is more recent. Though kaizen has been widely embraced by Japanese companies for years, kaikaku was less common. However, as news of Toyota’s global success spread, interest in kaikaku grew. Specifically, it refers to the transformation of the Toyota Production System, prompting many companies to explore and adopt this model.

The Kaizen Journey and the Kaikaku Leap: Pathways of Change

Kaizen” translates to “improvement” and embodies the philosophy of genchi gembutsu, which emphasizes hands-on, fact-based improvement through direct observation. Kaizen can take multiple forms, such as kaizen events, jishuken, technical enhancements in processes and equipment, and the everyday improvement suggestions encouraged by everyone. The kaizen process applies equally well to any process. Kaizen means “change good” and by definition, must be an improvement over the current condition.

Kaikaku means “transformation” or “reform” and implies a redesign of business processes that is radical and reaches across an entire organization. On a local scale, kaizen activity may result in a kaikaku if a drastic change is made. In general, a kaikaku is something that is planned more carefully over a longer period of time, while kaizen can be planned and executed in days or weeks. A “kaikaku” may not always have a positive outcome, since “reforms” or “transformations” may in fact fail.

Navigating Kaizen’s Steps with Kaikaku’s Leaps

Both kaizen and kaikaku are essential strategies. Without a culture of kaizen, a kaikaku can not succeed. Successful long-term transformations require a series of short-term successes, the engagement of everyone in the organization, and a bias towards practical local improvement. In the worst case, kaikaku can be a top-down reform that does not take into consideration the local realities, resulting in surface-level improvement or no improvement, as seen by the Japan Post’s struggling kaikaku effort.

Similarly, without kaikaku, kaizen might only represent a sequence of minor enhancements that don’t necessarily align with a business’s long-term vision or produce significant bottom-line outcomes. Absent kaikaku, kaizen might not tap into the potential of new technologies, innovative operational models, or fresh business avenues. While kaizen is undeniably beneficial, it’s not sufficient on its own for long-term success. Kaikaku ensures that these continuous improvements are grounded in a broader, transformative vision.

Decoding Management Jargon: Real Innovation vs. Hype

Innovation and process aren’t mutually exclusive; they go hand in hand. However, conveying multifaceted, holistic messages can be challenging, especially to a management audience often attracted to trendy buzzwords like “innovation,” “maverick,” or “Lean.” As a result, discussions tend to get fragmented, with gaps filled in future decades. Perhaps this cycle ensures that upcoming generations of consultants and management experts will always have something to delve into and reinterpret.

Harmonizing Kaizen and Kaikaku: The Dual Pillars of Sustainable Success

Navigating the intricate dance of kaizen’s steady improvements and kaikaku’s groundbreaking transformations is crucial for sustainable organizational success. Kaizen focuses on daily, hands-on enhancements, while kaikaku aims for game-changing shifts aligned with a company’s overarching vision. Together, they create a harmonious relationship, ensuring businesses remain rooted in the present, yet ambitiously reaching for the horizon. Beyond fleeting management buzzwords, a deep, integrated understanding of both strategies is vital. For companies looking to thrive in the long run, marrying the philosophies of kaizen and kaikaku becomes indispensable.


  1. Major B V Naik

    November 7, 2006 - 2:41 am
    Reply

    Dear Sir,
    I am an ex-Army officer who is in the field of ISO 9001 auditing as a Lead auditor. I am interested in learning about as many aspects of quality so that through my auditing I can add value. With regards
    Major B V Naik

  2. Jon Miller

    November 10, 2006 - 7:48 am
    Reply

    Hello Major Naik,
    We do not have as much information on quality specifically as we do on kaizen. Perhaps you can visit the http://www.iSixSigma.com website or the http://www.asq.org website for more information.
    Regards,
    Jon

  3. Alex Zolotov

    November 16, 2006 - 2:17 pm
    Reply

    Dear Jon,
    First, thank you for your weblog. It is very interesting and provides a lot of unique information about TPS and Kaizen.
    This particular article reminds me that TOC was designed exactly as you presented the kaikaku. Was not it? The kaizens in the areas, which are away from the bottleneck will not make The Goal close. Therefore, what do you think about the similarities and differences in the kaikaku and TOC?
    Thank you,
    Alex Zolotov

  4. Jon Miller

    November 16, 2006 - 6:53 pm
    Reply

    Hi Alex,
    I am not much of an expert on TOC but I do not think of it as analogous to kaikaku.
    The main idea here is that to have kaikaku (transformational change) you need the foundation of kaizen (mindset of continuous improvement) and that local kaizens without a high-level “image” is not good good enough.
    I think TOC is a way of thinking about where to apply improvement, and in that sense can apply to either kaikaku or kaizen.
    Jon

  5. HENRY ROBINSON

    June 7, 2011 - 12:42 pm
    Reply

    THANK YOU FOR THE UNDERSTANDING ON THE TERMS, KIAKAKU AND KAIZEN. VERY HELPFUL IN THE FUTURE.

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