Use kaizen to thrive in uncertain times

Now more than ever, it’s seemingly impossible to predict what’s around the corner. Geopolitical risk, supply chain volatility, and shifting consumer behaviors have created a cacophony of noise. Over the years, one lesson has rung true: The strongest organizations do not waste energy trying to predict the future. They focus on controlling their controllables. This mentality echoes the proven methodologies from the Japanese philosophy of kaizen—continuous improvement through small, steady changes. Toyota’s adoption of this system and lean manufacturing revolutionized the automotive industry in the 1960s, and Danaher’s adoption in the late 1980s gave the conglomerate an enduring competitive advantage. At Vontier, we’ve adapted these time-tested principles—systematic problem-solving, operational rigor, and continuous improvement—and applied them to our business. Each year, we host a week-long leadership kaizen, a set of focused, cross-functional problem-solving workshops to improve operational excellence, unlock productivity, increase efficiency, and deliver superior quality. MAINTAIN LONG-TERM FOCUS AMID SHORT-TERM VOLATILITY No matter the temptation to focus on other priorities or to get wrapped up in the latest market developments, we come together to problem-solve. These kaizens are the foundation of our success and tending to them, even in the face of chaos, is increasingly critical. 1. Operational excellence is the best shock absorber Operational excellence is what allows a company to keep its footing during periods of macro-environment uncertainty. It is foundational in building efficiency and maintaining resilience, but requires systemic attention and an understanding that the operational rigor must extend across all corporate functions. Successful companies create distinct spaces for creative problem solving, with clear processes for moving improvement opportunities forward and maintaining accountability. Following our leadership kaizen, we conduct 30, 60, and 90-day check-ins that allow the day-to-day leaders to reevaluate progress, update timelines, track performance metrics and, most importantly, voice how we as a leadership team can best support them in achieving those goals. 2. Set a culture of continuous improvement High-performance culture is a control system that empowers employees to drive impact. It defines speed of decision-making, sets high expectations, improves agility, and creates a shared standard for performance. When the culture works, people feel comfortable surfacing their obstacles instead of hiding them. Then, by embracing collective problem solving, teams shift from reactive to action orientation. At the end of every kaizen check-in, I make it a habit to ask, “What support do you need? What can we do to help you succeed?” These questions spark meaningful problem-solving and provide resources to support achieving our shared goals. 3. Capital allocation reveals discipline In uncertain environments, capital allocation is not just a financial decision, it is a leadership statement. The best leaders maintain rigorous standards and prioritize simplicity when possible. They invest where the organization has a genuine advantage. They treat the portfolio as a dynamic system rather than a collection of disconnected assets. Elaborate metrics, business segments, and explanations are complexity masquerading as precision. The result is often not clarity, but confusion, and confusion slows execution. At Vontier, our 80/20 process helps identify which 20 of projects will drive 80 of impact. They make up the agendas for our kaizens and uncover value for our customers, our operations, and our shareholders. This principle helps us reduce noise and clarify priorities so we can focus on what matters most. FINAL THOUGHTS In today’s landscape, operational excellence, and the ability to adapt to changing tides and targets to maintain that excellence, isn’t optional. The best leaders know that it’s not about predicting the economy or the customer. It’s about controlling your standards, incentives, and processes. It is about building an organization that can perform with excellence in good times and bad. Mark Morelli is president and CEO of Vontier.