![](https://kaizen.com/wp-content/uploads/2022/09/sk_danaher_before1.png)
Problem
• 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](https://kaizen.com/dist/filemanager/Uploads/uk/danaher_business_system.jpg)
• Expand Lean to Mergers & Acquisitions (M&A)
• Expand Lean to business processes and engage the 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](https://kaizen.com/app/images/pt/Strategy/danaher_growth.png)
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](https://kaizen.com/app/images/pt/Strategy/danaher_TSR.png)
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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