Back in the 1980s, a group of business writers popularized a term that reminds business owners of the need to continuously improve their businesses: Kaizen. The Kaizen principle traces its origins to a Japanese management concept that emphasizes the need for improvement that is both incremental (gradual) and continuous. For those who developed the concept—and for those who have implemented it—Kaizen is a way of life, a philosophy that permeates every aspect of life and business.

When business owners decide to practice Kaizen in their lives, they commit themselves to developing personal discipline and to pursuing long-term change. These characteristics guide the business owners in their pursuit of Kaizen-like improvement.

At a very basic level, Kaizen means continual improvement. But a closer definition of the word reveals another level of meaning: “to take apart and put back together in a better way.” In business, the thing that is taken apart is usually a process, system, product, or service. Businesses that embrace this application of Kaizen are characterized by a culture where asking questions, examining processes and products, and making suggestions for improvement are encouraged and rewarded.

In this way, the cycle of Kaizen activity involves standardizing an operation or product; measuring or examining the operation or product; comparing the measurements against the goals or requirements; innovating to meet requirements and increase productivity; standardizing the new, improved operation or product; and then beginning the cycle again.

Because Kaizen emphasizes making small, ongoing changes and then re-examining processes and products, Kaizen is a never-ending cycle. And because it requires constant attention, the

Kaizen cycle is also one that encourages learning by doing. It doesn’t suggest that the perfect solution must be found before a product is produced and sold or before an operation is implemented. It accepts learning and improving as part of the process. Trial and error is not only acceptable to business owners who practice Kaizen—it is part of the equation for improvement.