27 May
2010
Process management leads to business commoditization. When I say this I am not suggesting the process engineering and process control systems are not important, but where I do have concern is when people feel like their entire organization needs to be mapped and documented with process maps. Certain things lend themselves well to mapping. Month-end close for instance is a perfect example of something that you want perfected with the highest level of efficiency possible. However while month end close is very important overall it isn’t likely part of your core value proposition. If you do map and control your core value proposition, you are moving yourself down the path to commoditization. If you can map it, someone will replicate it. Maybe not right away, but once a path has been perfected and documented, it can be copied.
Quality and efficiency do not guarantee success – they are just the foundationTwo thoughts to consider:
1. A recent post by
Tom Fishburne entitled ‘
Quality out of Control’. In it he talks about a great quote from the book
Rework:
One of the brilliant riffs in the book is titled, “Nobody likes plastic flowers”. Jason and David lobby for the beauty of imperfection and advocate the Japanese principle of wabi-sabi. They illustrate wabi-sabi with a wonderful quote by Leonard Koren: “Pare down to the essence, but don’t remove the poetry. Keep things clean and unencumbered, but don’t sterilize.” This flexible philosophy often conflicts with Quality Control, which prizes consistency over “poetry”. The Six Sigma Quality Control movement in particular clamps down on variability….
2. David Snowden wrote a post that compared Efficiency and Effectiveness:
Efficiency is about stripping away superfluous functionality so that you only have what you really need left. This is great if the context does not shift and has dominated re-engineering and six-stigma approaches. Effectiveness involves introducing a requisite degree of inefficiency so that the system as a whole can be more resilient and adaptive. Focusing on effectiveness is appropriate where the context is, or may shift before you can re-engineer your system.
More and more what makes a company valuable is not its process’s but the frameworks that allow creativity and innovation to flourish and yet still be productive. As Seth Godin says in Linchpin – all artists ship… but artists do not use roadmaps and they aren’t always efficient.
Companies that tend to take leadership positions in the market, do not use roadmaps. I doubt that
Apple has a process map for new product development. One might argue that without process, the quality of the iPhones coming off the assembly line would be horrible, but here’s the thing: it’s not the device that is Apples core value proposition. It’s their ability to design great products, and create an army of passionate consumers. Quality is no longer the pinnacle of success as it was in the previous century. The quality of the products is just assumed – a price of entry just to be in/stay in the market.
Take another completely different example. Recipes are a process of how to create a great dish in a repeatable fashion, but recipes alone do not make a restaurant great. What make a restaurant great is the chef, the interior decorators etc. (the artists). It is the creators ability to use a framework – for instance how the chef knows what herbs are currently in season, and how these will react differently with say the local fresh fish available to make a great dish. Again – process control/quality is the price of entry (eg – food doesn’t make you sick). People don’t pay a premium for a nice restaurant for a repeatable hyper-efficient process. They can get that at any franchise restaurant for commodity prices.