Benchmarks & Client Cases
Continuous Profitable Growth at Danaher Corporation
The Challenge
Danaher Production System
Problem
• Up to 1991, the Danaher Production System only sought to improve costs
• The impact on sales was indirect (through Quality and JIT Delivery)
• No improvement on innovation, product development, sales or logistics
Root Causes
• No model or tools to improve non-production departments
• Top management not seeing the benefits
• Strategy planning not following Lean principles
The Solution
Danaher Business System
• Expand Lean to mergers & acquisitions (M&A)
• Expand Lean to business processes and engage top management
• Expand Lean to cover idea-to-execution processes
The Results
The Danaher Business System improvement culture together with the improved Strat to Action process yielded impressive results.
Total return, dividends reinvested
Because of the DBS Culture and the Strat to Action Process, Danaher has grown profitably by almost 20% every year. This is also reflected in its market valuation: 80,000% since 1980.
Total Shareholder Return
The generation of extremely high Free Cash Flow allowed the company to implement a very successful M&A Strategy with a strong impact on Total Shareholder Returns (TSR).
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