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Winning Without Competition: How to Break Out of a Commodity ...

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Trying <strong>to</strong> understand the causes forces you <strong>to</strong> play detective in terms <strong>of</strong> figuring<br />

out:<br />

• Who is involved?<br />

• What and where is the cause <strong>of</strong> the problem?<br />

• When does the problem occur?<br />

• What types <strong>of</strong> projects does it occur on?<br />

You use these types <strong>of</strong> questions <strong>to</strong> identify how you will "study" or measure how<br />

a process is working. Collecting data helps you focus on the true location <strong>of</strong> the<br />

problem. Once you identify the location <strong>of</strong> the problem, you then hypothesize<br />

why the problem arises and determine potential solutions <strong>to</strong> this. (See Steps<br />

Three and Four in Appendix One.)<br />

Sidebar C: Structure Affects, but Does Not alone Determine, Behavior<br />

“<strong>Break</strong>ing the Functional Mindset in Process Organizations,” Harvard Business<br />

Review, Sept./Oct. 1996.<br />

• Authors compare companies in the same industry – electronics<br />

• Reorganization <strong>of</strong> operations along process lines made no difference <strong>to</strong> cycle<br />

time performance unless it was accompanied by new management approaches<br />

that create a culture <strong>of</strong> collaboration by focusing on:<br />

• Teamwork skills<br />

• A collective sense <strong>of</strong> responsibility <strong>to</strong> process outcomes<br />

• Key “collaboration” <strong>to</strong>ols used <strong>to</strong> make process reorganizations succeed<br />

included:<br />

• Structure jobs with overlapping responsibilities<br />

• Base rewards on group performance<br />

• Layout work area so people can see each other’s work<br />

• Change procedures <strong>to</strong> enable collaboration<br />

• Using the above <strong>to</strong>ol(s) increased cycle time 7.5 times in process-complete<br />

organizations<br />

• Functional organizations were 3.5 times faster than process-complete<br />

organizations not using collaboration <strong>to</strong>ols<br />

Sidebar D: Benefits <strong>of</strong> Strategic Alliances<br />

• Enhance product value<br />

~ Superior timing<br />

~ Create new or improved performances<br />

~ Lower costs and risks<br />

~ Provide more value in use<br />

~ Offer a stronger product line<br />

~ Compatibility that increases product appeal<br />

~ Enhance product images<br />

Pamphlet #5 Page 219

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