Category: Systems Thinking

Uniting Process Improvement “Religions”

Post author By Robert Crouch
Post date April 5, 2021

When they set out to turn around processes that have become woefully inefficient or ineffective, most companies choose one of four process improvement “religions”: Lean, Six Sigma, Business Reengineering or Business Process Management (BPM). After hearing about its success at another organization, many companies choose just one. For example, several companies embarked on Six Sigma programs after their CEO heard about GE’s success with the approach, and many other companies have adopted Lean because of Toyota’s success. It’s like adopting a diet or exercise program that a friend has used and lost 50 pounds.

But some companies realize they need to go beyond making episodic improvements. They try to institutionalize process improvement — that is, put in place the right mechanisms in their management systems so that their business processes don’t become grossly unproductive in the future. That is, they try to build continuous improvement into their DNA. It’s like the difference between going on crash diets every two years and fundamentally changing one’s eating and exercise habits.

Change Management Systems Thinking

What Is Strategy?

Post author By Robert Crouch
Post date March 1, 2021

Today’s dynamic markets and technologies have called into question the sustainability of competitive advantage. Under pressure to improve productivity, quality, and speed, managers have embraced tools such as TQM, benchmarking, and re-engineering. Dramatic operational improvements have resulted, but rarely have these gains translated into sustainable profitability. Gradually, the tools have taken the place of strategy.

That shift led to the rise of mutually destructive competitive battles that damage the profitability of many companies. As managers push to improve on all fronts, they move further away from viable competitive positions. Operational effectiveness, although necessary to superior performance, is not sufficient, because its techniques are easy to imitate. In contrast, the essence of strategy is choosing a unique and valuable position rooted in systems of activities that are much more difficult to match.

It’s important to trace the economic basis of competitive advantage down to the level of the specific activities a company performs. In many cases, making trade-offs among activities is critical to the sustainability of a strategy. Whereas managers often focus on individual components of success such as core competencies or critical resources, managing fit across all of a company’s activities enhances both competitive advantage and sustainability.

Organizational Improvement Process Improvement Systems Thinking

Are You Doing SWOT Analysis Backwards?

Post author By Robert Crouch
Post date February 22, 2021

SWOT analysis is a recognized tool to identify an organization, product, or service’s strengths, weaknesses, opportunities, and threats. Yet, despite the tool’s wide use, it’s often conducted ineffectively, making the analysis less than insightful with no clear path to action. Part of the problem lies in focusing on internal factors — strengths and weaknesses — first. But by turning it on its head, you can conduct a better analysis that can result in more actionable strategic recommendations. First, gather an inventory of relevant environmental conditions — the threats and opportunities. Next, explore internal strengths and weaknesses. Finally, generate recommendations using this simple sentence: “Given the condition of [external factor], our ability to [internal factor] leads to our recommendation that we [recommendation].” By looking at the external conditions first and internal internal attributes second, you will generate a better set of clear-cut and supported ideas for moving forward.

Change Management Organizational Improvement Personal Improvement Process Improvement Systems Thinking

Three Lessons Every Business Can Learn From SpaceX

Post author By Robert Crouch
Post date May 22, 2020

Even if you’re not launching humans into space, here’s three lessons every business can learn from SpaceX.