Lean vs Agile: What’s the difference?

In today’s competitive business environment, companies tend to seek ways to enhance the quality of their day-to-day operations and streamline their product and service offerings.

Wondering how you are going to ace it? Don’t worry, we have got you covered!

Agile and Lean methodologies have emerged as two of the most popular approaches that offer a comprehensive means to reform how a product can serve value to their customers.

This blog will explore the Agile vs. Lean methodologies, study their histories, and examine their strengths and weaknesses.

Brief History of Lean and Agile Methodologies

Lean and Agile are two methodologies that have revolutionized how businesses operate, improve and deliver value to their customers. These methodologies have their roots in manufacturing and software development, respectively. Let’s take a closer look at their histories.

Lean

The origins of Lean can be traced back to the Toyota Production System (TPS) developed by Toyota Motor Corporation in Japan in the 1940s.

TPS was a response to the challenges of post-war Japan, including a need for more resources, space, and funds. TPS aimed to eliminate waste and inefficiency by creating a system focused on continuous improvement, quality, and customer satisfaction.

The fundamental objective of Lean Manufacturing is to optimize the delivery of top-quality products or services to customers, minimizing the lead time and cost of production, and ensuring exceptional customer satisfaction.

Agile

Agile methodology originated in the software development industry in the early 2000s. It was a response to the traditional “waterfall” approach to software development, characterized by long development cycles, rigid processes, and a focus on documentation rather than working software.

In 2001, a group of software developers met in Snowbird, Utah, to discuss their frustration with the traditional approach to software development. The group created the Agile Manifesto, which outlines the core principles of Agile.

The primary objective of Agile is to expedite the delivery of functional software to the customer while simultaneously accommodating changes in requirements through flexibility and adaptability.

78% of U.S. government executives believe using agile and DevOps methodologies positively impacts their organization.

Lean and Agile Today

Presently, Lean and Agile have diversified beyond their initial manufacturing and software development domains and are now widely adopted across various industries, including finance, healthcare, and education, among others.

A growing trend is the integration of Lean and Agile methodologies, resulting in a hybridized approach called Lean-Agile. This approach seeks to capitalize on both methodologies’ strengths to drive higher efficiency, quality, and customer satisfaction.

Both Lean and Agile methodologies have proven to be effective in improving operational efficiency, enhancing customer satisfaction, and driving growth.

Lean methodology enables businesses to eliminate waste and optimize processes, whereas Agile methodology helps businesses to respond quickly to changing market needs.

Together, these methodologies can help businesses to become more efficient, customer-centric, and future-ready.

What is Lean Software Development?

Lean methodology focuses on optimizing processes and reducing waste to improve efficiency. The Lean approach originated in the manufacturing industry and was used to streamline production processes and reduce costs.

However, it has since been adapted for various industries, including software development and healthcare.

The core principle of Lean is to identify and eliminate any waste that doesn’t add value to the process. This includes overproduction, waiting, defects, excess inventory, unnecessary motion, and over processing.

Lean practitioners use various tools and techniques to eliminate waste, including value stream mapping, Kaizen, 5S, and Kanban.

Value stream mapping identifies and visualizes the entire process from start to finish, including all the steps involved and any potential bottlenecks or waste.
Kaizen is a continuous improvement process that involves making small, incremental changes to processes to improve efficiency.
5S is a method for organizing and optimizing the workplace.
Kanban is a visual system for managing and optimizing workflow.

Core Principles of Lean Methodologies

Define value from the customer’s perspective: Lean methodology starts by defining value from the customer’s perspective. This helps businesses understand the needs and expectations of their customers and identify opportunities for improvement.
Identify the value stream for each product or service: Once businesses have defined customer value, they need to identify the value stream for each product or service.

This involves mapping the flow of activities from start to finish and identifying any non-value-added activities.
Create a flow for the value stream: Once the value stream has been mapped, businesses can create a flow that minimizes waste and reduces lead times.

This involves eliminating bottlenecks, reducing inventory, and improving communication and collaboration between different departments.
Establish pull systems to control the flow: In Lean methodology, businesses use pull systems to control the flow of work. This means that work is only produced when it is needed, and businesses can avoid overproduction and excess inventory.
Strive for perfection through continuous improvement: Finally, Lean methodology encourages businesses to strive for perfection through continuous improvement.

This involves measuring and analyzing performance, identifying opportunities for improvement, and making incremental changes to processes and systems.

The primary objective of Lean is to maximize customer value while minimizing waste. It achieves this by identifying and eliminating non-value-added activities, also known as waste.

Lean also focuses on improving quality, reducing lead times, and increasing efficiency.

What is Agile Software Development?

Agile is a methodology that is focused on iterative development and continuous improvement. The Agile approach was originally developed for software development but has since been adopted by various industries, including marketing, healthcare, and education.

The core principle of Agile is to prioritize customer satisfaction and respond to changing requirements quickly.

Agile practitioners use various tools and techniques to achieve these goals, including Scrum, Kanban, and Lean Startup.

Scrum is an Agile framework for managing complex projects that involve iterative development cycles, daily stand-up meetings, and sprint reviews.
Kanban is a visual system for managing and optimizing workflow.
Lean Startup is a methodology for developing new products and services that emphasizes rapid prototyping and customer feedback.

Core Principles of Agile Methodologies

Individuals and interactions over processes and tools: Agile methodology places a strong emphasis on people and their interactions. This means that teams work collaboratively, communicate regularly, and are empowered to make decisions.
Working software over comprehensive documentation: In Agile methodology, the focus is on delivering working software quickly and efficiently. This means that documentation is kept to a minimum, and teams are encouraged to prioritize coding and testing.
Customer collaboration over contract negotiation: Agile methodology emphasizes customer collaboration throughout the project. This means that teams work closely with customers to understand their needs, gather feedback, and make any necessary changes.
Responding to change over following a plan: Finally, Agile methodology places a strong emphasis on flexibility and adaptability. This means that teams are encouraged to respond to changes in requirements, technology, or the business environment and make any necessary adjustments to the project.

The primary objective of Agile is to deliver high-quality products or services quickly and efficiently. It achieves this by breaking down the project into smaller, more manageable tasks called sprints. The Agile team then collaborates to complete each sprint, test the product or service, and make any necessary changes.

Differences Between Lean and Agile Methodologies

Differences	Lean	Agile
Origin	Originated from manufacturing	Originated from software development
Emphasis	Emphasizes on efficiency and waste reduction	Emphasizes on adaptability and flexibility
Approach	Process-driven methodology	People-driven methodology
Scope	Focused on end-to-end value stream optimization	Focused on iterative delivery of working software
Feedback	Feedback is primarily through process data	Feedback is primarily through regular interaction and communication
Roles	Emphasizes on role specialization	Emphasizes on self-organizing teams and collaboration
Timeframe	Longer implementation cycle	Shorter implementation cycle
Customer Value	Value is achieved by removing waste	Value is achieved by delivering high-quality products quickly and continuously
Documentation	Focuses on creating standardized documentation	Focuses on creating lightweight documentation and working software

The variances between Lean and Agile methodologies significantly affect their implementation in a software development project.

Despite sharing a focus on customer value and continuous improvement, they diverge in their emphasis on waste reduction versus flexibility and adaptability, resulting in distinct approaches to achieving their goals.

Hence, recognizing these differences is imperative for selecting the appropriate methodology for a specific project and ensuring its success.

Similarities Between Lean and Agile Methodologies

Attributes	Lean	Agile
Goal	Maximize value by reducing waste and increasing efficiency	Maximize value by delivering working software quickly and adapting to changes
Focus on Customer	Both methodologies prioritize delivering value to the customer.	Both methodologies prioritize delivering value to the customer.
Iterative Process	Lean follows an iterative process to identify and eliminate waste.	Agile also follows an iterative process to produce increments of the product.
Empowerment of Teams	Lean empowers teams to identify and remove waste, and improve processes.	Agile empowers teams to self-organize and make decisions.
Flexibility	Lean is flexible, allowing changes in the process for improvements.	Agile is highly flexible, allowing changes in the product based on customer feedback or changes in the market.

Choosing the Right Methodology for Your Project

Deciding on the correct methodology for your project hinges on a thorough evaluation of several variables, including project requirements, objectives, constraints, and the development team’s expertise.

A conscientious review of these factors enables project managers and teams to select the most suitable methodology. This choice can ultimately contribute to successfully delivering a high-quality product that meets customer expectations.

Jisha Panicker

Jisha Panicker, the Head of HR at ellow, a platform specialising in tech recruitment, brings with her over 10 years of experience in diverse aspects of HR. Learning agility, resilience, and grounded optimism are the three distinct qualities that have proven instrumental in her success. She is a fitness freak, an occasional reader, and loves dancing and driving.