The limits of Process Excellence

Processes have subprocesses and subprocesses are group of tasks.

When the system becomes too complex, like the human body or a supply chain, tweaking a few inputs will not adress the problems.

The system requires redesign or drastic adjustments which neither Lean methods nor Six Sigma can provide...

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.

The Complexity of Human Systems

Inspired from the 8th Habit by Steve Covey

A statement from the book.

John Gardner summarized it as follows: 'Most ailing organizations have developed a functional blindness to their own defects'. They are not suffering because they cannot resolve their problems, but because they cannot see their problems'.

Flawed paradigms are at the basis of the poor business results; in this case it is that the industrial age was based on the assumption that machines and capital created the wealth and not people. People were necessary but replacable.

The fundamental reality is human beings are not things needing to be motivated and controlled. Knowledge workers are four-dimensional - body, mind, heart and spirit.

And great organizations unleash this human potential by inspiring individuals to find their voice, a complex balancing act of trust through shared values, empowerment and allignment.

Too complex for a mathematician. Data and statistics are more easy to 'stimulate' and 'control'. And Google will organize the worlds' information for us.

The essence of Six Sigma

If one would ask about the essence of Six Sigma, it would be not to jump to conclusions but observe the process first and listen to the data.

Is the process really broken? Is this a real problem? Should we do something about this? Or are we just facing natural process variation?

Wherever we see numbers change, our Western filosofy leads to action and reaction. Stock price down, we buy more or sell the stock. Increase of the unemployment number, we get worried about a looming recession. Less Profit. Down goes our bonus or we re-organize the department.

Six Sigma teaches that instead of over-reacting, we should first ask 5 times Why? Do we really face a problem? Do we understand the root cause? And more important, can we fix the problem?

Six Sigma theory shows that only predictable processes can be improved. You can only fix what already works. And something that works is predictable and understood.

Where there is no standard, there can be no improvement.

Business Success by John Collins - Just a Marketing Fad?

Business Book writer John Collins demonstrates an obsession with Business Success.

All his books are around that theme:

1) From Good to Great
2) Build to Last
3) How the mighty fail

Can we apply all these learnings? Is the methodology applied in these books scientifically sound? Is it justified to learn from the experience from others to become successfull? Without an answer to these important questions, it is impossible to become successfull just by copying successfull companies.

Eventually the very systematic and data-driven approach from John Collins would be laughed away by Andrew Cox as merely barefoot empiricism. Years ago, this excentric University lecturer from Birmingham University started a crusade against the dominant thinking that success comes from successful competition in the marketplace.


In the end this critique is against an inappropriate way of thinking.

* 'Fads' cannot work outside the circumstances in which it was originally implemented
* 'Fads' are based on a benchmarking mentality of observation of past practices and is no guide to future action
* Succesful adaptation can only lead to a war of competitive imitation
* Such approach is unsound as a guide to appropriate behabviour for particular companies under specific circumstances

Taking a fresh look at our ignorance about why some companies are successfull and others are not, Andrew Cox came to see power relations in the supply chain as the key lever to business success. The one who controls the key assets in the supply chain through innovation builds a successfull monopoly and temporarily eliminates the competitive pressures of the marketplace.

A new exciting area of scientific exploration that could give great rewards - if one came to understand better what brings business success...

Entrepreneur, Leader or Manager?

In business, many talk about leadership.



Leaders shape the world. Leaders create vision. Leaders are the modern version of the ancient Greek heroes. Hercules was a Leader.Ulysses was a Leader. Achiles was a Leader. Each used a unique godly strenth to shape their world. They knew what they were good at and exploited these Strength. Very similar to the Strength Movement.



What the authors claim is that we can all be leaders provided we know our Strength.



Go to their Website and you'll discover StrengthBased Leadership.

http://strengths.gallup.com/110659/Homepage.aspx



Managers are like Mother Theresa. They love People. They understand we are not Gods and have more weaknesses than strengths. They watch, listen, feel, talk, laugh, hug and whisper caring words. They are taking care of each, making sure we feel loved and happy. They create a family to avoid that problems are hindering our wellbeing and performance.



Entrepreneurs, to complete the gallery are like Richard Branson. At the heart of business are people bursting with ideas and surrounded by people willing to give it a try. Great entrepreneurs create excitement about a not yet created future. They create a new future, together with others. They want to become rich.



Let's all become entrepreneurs and we will discover the great managers and leaders amongst us.