Abstract
Purpose This paper aims to develop a methodology for lean implementation that reduces the risk of damaging a company's key resources and abilities through the application of core competence theory. Designmethodologyapproach Academic literature provided background conceptual understanding of lean and core competence theory for an industrial working party of domain experts from 15 major aerospace companies in the UK to develop a methodology for lean implementation that would not damage firm's competences. The methodology was trailed through cooperative inquiry in a business unit of a leading global aerospace company using a case study approach. Findings An accessible definition of core competence that captures academic theory was proposed through an industrial working group. Further a methodology for lean implementation, drawing upon core competence theories was developed. The method comprised four tools market analysis, the visible value stream, customer value analysis, and financial modelling. Tools drew upon established practice and their joint application is intended to safeguard a company's key resources and capabilities from loss or impact during lean implementations. Application in a single case study company and the effects observed over a number of years indicated the methodology, though developmental, was capable of significant positive effects. Originalityvalue The paper provides a practical definition of core competence and application of theory within a lean implementation, trailed and validated in an industrial setting. Competence theory has previously been described as lacklustre due to the abstract nature of the ideas.