In the 20-odd months since In Search of Excellence was published, I have spoken to some 400 audiences. They were in Maui, Hawaii; and Geneva, Switzerland. They were representatives of old industries like steel and forest products, and of new industries like software and gourmet chocolate-chip cookies. They included everyone from a top wholesaler of plumbing and electrical fixtures in Sweden to the owner of the world's largest dairy store, in Norwalk, Conn. Among them were 5,000 city managers, 1,000 bakers, and the senior management of Bell Telephone Laboratories Inc.
Surprisingly, despite the diversity of the audiences, they all asked similar questions. What follows is a distillation of those questions -- and of how I try to respond.
1. Excellence focused on large companies. But is there anything you learned that relates to the particular problems and opportunities of smaller companies?
There is a lot of advice and writing on the transition a small company must go through as it grows. It suggests an inevitable cycle of deterioration, an evolution from a highly charged, entrepreneurial, customer-intensive enterprise to a bureaucracy. The implied message is: "You're going to become calcified; it's just a matter of how soon."
There is a germ of truth in this. There is no doubt that the $15-million company, no matter what the business, needs a more highly articulated set of procedures for controlling things than the $100,000 company does.But most of the scenario is hogwash. The magic of W. L. Gore, Dana, Emerson Electric, 3M, Hewlett-Packard, Procter & Gamble, PepsiCo, Milliken, and Johnson & Johnson -- in other words, the companies we hold up as excellent -- is that they have all retained a much higher share of their "small company" simplicity and vitality than their less effective competitors have.
The message of Excellence is that the key to corporate success lies in superior customer service, continuing internal entrepreneurship, and a deep belief in the dignity, worth, and potential of every person in the organization. There is no iron law that says you must lose those virtues as you grow; in fact, the principal job of senior officers of a small corporation is to maintain them. The tools may be different for a Disneyland than for a one-park, 20-acre establishment. But the intensity of customer focus can and must be maintained. The personal touch -- we call it Management By Wandering Around, courtesy of Hewlett-Packard -- can also be maintained. Giving up MBWA is not an imperative of size. But the sad news is that small companies can lose touch very easily and that the basics of Excellence are at issue from the start.
2. Excellence also focused on the concerns of people who are building companies, using models of enterprises that have been people-oriented and innovative since inception. But what can you do if you inherit a company that has been bureaucratic or lackluster for decades?
Successful turnarounds are a tough act, but what is perhaps most interesting about them is that they follow exactly the same form as the new-company building efforts. The greatest turnaround artists work repetitiously on creating distinctive strategic skills. They are tireless.Each, above all, believes in the power of a thousand little things done just a bit better.
A handful of stories come to mind. Rene McPherson inherited, as chairman, a then-$1-billion (now more than $3-billion) business in Toledo -- Dana Corp., a manufacturer of such products as brass propeller blades and axles, a company he described as "having the rottenest product line ever granted by God to a Fortune 500 company." In the 1970s he turned it around to the point at which it became the number 2 company among the 500 in return to investors. McPherson radically decentralized. He gave the factory managers autonomy and the tools to do the job: finance, personnel, purchasing, computers, etc. He created an exciting, no-nonsense, competitive environment with a ceaseless focus on practical productivity improvements. His focus was the people on the line -- "the boss of their 25 square feet," in McPherson's terms.
More important was McPherson's approach to change. When he is asked to comment on the importance of any particular program in his productivity-improvement process, he shoots back with: "It is damned important. Another feather on the scale."
A different sort of turnaround is PepsiCo Inc. Fifteen years ago it was a sleepy, second-rate competitor to The Coca-Cola Co. Today it is a vital, entrepreneurial, $7.5-billion company. The magic has been brute persistence, never assuming that the job is complete.President Andy Pearson's strategy, while in the field with a division, is to avoid the executive suite like the plague. He first zeros in on the young assistant brand manager, and he always asks the same damned questions. "What have you learned in the last 96 hours? What's going on in the test market? What are you up to?" That's the PepsiCo magic. Every one of Pearson's talks is, at best, another feather on the scale.
The theme is incredibly consistent, regardless of the company, yet each variation of the theme is unique.Successful turnabout artists are, pure and simple, no more and no less, broken records. No stone is left unturned. No stone is especially important. Yet no stone is unimportant.
3. One of Excellence's premises is that a company's attitudes about people, products, and its way of doing business are defined by its founder. The book holds up Tom Watson, the founder of IBM Corp. and the inspiration for many of IBM's characteristic values and practices, as a model. But what if the founder of your company lacks Watson's stature?
There are several ways to answer this question. Most important is to challenge the notion that the people who run the socalled excellent companies are 17 feet tall with well-honed tap-dancing skills. It's not so. Some are extroverts. Many are introverts. Tom Watson Sr. was, in his own words, an "avowed showman." On the other hand, if you're more than seven inches away from Bill Hewlett, you have a tought time hearing him. But they all have one thing in common.Almost all are obsessives.
Jim Woods is principal and founder of InnoThink Group. A strategic innovation consulting firm engaged to catalyze bottom-line growth. He has worked with government, U.S. Army, MITRE Corporation, Pitney Bowes, Whirlpool, and 3M. Jim’s business experiences, extensive research on competitive strategy and innovation have given him a fresh perspective on improving individual and organizational performance. Jim is a prolific speaker on strategic innovation, creative leadership, uncertainty and competitive strategy. Speak with us for consulting or speaking engagements call 719-266-6703 or click here for more information. Follow us @innothinkgroup LinkedIn Facebook
No comments:
Post a Comment