Benchmarks & Client Cases

Continuous Profitable Growth at Danaher Corporation

The Challenge

Danaher Production System
Danaher Production System


• 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
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

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, CAGR 2000-2010

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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