Why standardization matters

Standardization creates power and speed of reaction.

Take the United States of America. They all speak the same language. This in turn, allows them to share stories, myths and beliefs and build a common culture. It provides a base to build large systems, efficient organizations and rapidly share information. It is the basis of the power of Walmart, MacDonald, Coca Cola, Microsoft, Google, Disney or Hollywood. This culture can then dominate other less efficient cultures with fewer economies of scale.

While a dominant culture is great to leverage investments and efforts, it is said that efficiency and cultural dominance can reduce the richness of other cultures and block competition. The main argument against standardization is indeed that it blocks innovation.

I would tend to disagree with that. Innovation does require standards, a systemic approach and discipline. As Toyota discovered where there is no standard, there cannot be improvements. And where there is no quality new, more effective cultures will take the upper hand from the dominant thinking.