Planet Lean: The Official online magazine of the Lean Global Network
The people-led lean turnaround of a chain of car dealerships

The people-led lean turnaround of a chain of car dealerships

Roberto Priolo
Roberto
Priolo
September 4, 2017

DOCUMENTARY – In PL’s first ever documentary, we share the story of a chain of car dealerships in Africa. Watch and learn how people development and lean leadership made for one of the best turnarounds you’ll ever encounter.


Words and footage: Roberto Priolo, Editor, Planet Lean


Last May, I travelled to South Africa and Botswana to visit the Halfway Group, a chain of car dealerships that is achieving an extremely successful lean transformation.

At Halfway, lean thinking has been applied to processes of all kinds, but the two most important applications of its principles and techniques are certainly in Sales and in Aftersales (repairing and servicing vehicles).

The results achieved by the organization in both areas are unbelievable. After the introduction of lean, car sales at Halfway Ottery in Cape Town, for example, grew 400% in six years, while the number of cars being serviced in a day more than doubled (thanks to a very innovative system to service cars, based on one-piece flow). The results at Halfway Ngami (in Botswana) have been just as impressive, with the work of one the workshop’s bays seeing a 280% increase in efficiency with the introduction of the lean system. Overall, the Botswana dealership has seen a 111% increase in average monthly profit between 2013 and 2015. I was also extremely impressed by the Production Center in Johannesburg (where new and used vehicles are prepared for sale and delivery to customers), which has completely transformed itself in just over a year after the culture and management attitudes shifted towards lean. Such results and figures should be enough to convince every other dealer in the world (or maybe every company in general) to give lean a try.

But what made lean so successful here? Across Halfway, PDCA, problem solving and kaizen are built into the mindset of the business, with people coming up with ideas for improvements and managers encouraging them to take more and more initiative. Like any successful cultural shift, the Halfway transformation was possible thanks to forward-looking and humble lean leadership – with effective coaching and sound strategic guidance provided by Terry O’Donoghue (a former VP with Toyota South Africa) and Dave Brunt (the CEO of the Lean Enterprise Academy).

During my trip to Africa, I have met many of the people who are making this transformation happen, and I have been very touched by their stories. What struck me – and you will learn this today – is that the reality in which they work (where poverty, deprivation and crime are often rampant) ultimately represents the fuel of this turnaround. Struggle is at the heart of the lean journey of Halfway: nowhere more than here have I seen so many people succeed against all odds.

I left Africa humbled and inspired, and decided to share with you all the faces, voices and stories of the wonderful people I have met. That’s why we created the documentary you can see here. I know that this product – a first for Planet Lean – is going to challenge the low attention span of the online audience, but I am hoping you will still take the time to watch this documentary… perhaps on a weekend (between episodes of Game of Thrones maybe), or during your morning train ride to work. I promise you this is a story that will not leave you indifferent.

This documentary is meant to be an introduction to the Halfway story, and a way for you to get to know the people who are bringing change to the organization. You are going to read a lot about them over the next few months: starting in October, Planet Lean will publish a monthly article on Halfway. So, if you enjoy the documentary, make sure you come back the first week of each month to learn more about this extraordinary lean transformation.

Happy watching!


THE AUTHOR

Roberto Priolo is a Barcelona-based journalist and Managing Editor of Planet Lean

Read more

Seeing problems, four types of them
June 7, 2022
Seeing problems, four types of them

FEATURE – Using data from a recent piece of research on logistics, the author discusses how Lean Thinking contributes to a more efficient and effective way of dealing with problems.

Continue reading
Logistic Kaizen: the devil is in the details
February 26, 2025
Logistic Kaizen: the devil is in the details

FEATURE – Focused experimentation and kaizen can lead to impressive results in as little as one day, as the story of this Hungarian company shows.

Continue reading
Introducing the Lean Global Connection 2024
July 31, 2024
Introducing the Lean Global Connection 2024

EVENT LAUNCH - Save the date! The Lean Global Connection 2024 will take place on November 21 and 22. In this article, our editor introduces the event's theme and tells us what attendees can expect from the largest online lean event in the world.

Continue reading
Where the Lean Community is and where it should go
April 28, 2017
Where the Lean Community is and where it should go

WOMACK'S YOKOTEN – As the Lean Enterprise Institute turns 20, its founder provides us with a bit of hansei on where we are and where we are going next as a community, and on what challenges we might tackle.

Continue reading

Read more

No items found.