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In Search of Excellence                     Tom Peters &            Robert H Waterman Jr.                        Archana M...
Overview How does one achieve Success? Can Success be Achieved through Structure and Strategy? Is Structure followed by St...
Criteria for SuccessMcKinsey 7-S Framework•   Strategy•   Structure•   Systems•   Style•   Staff•   Skills•   Shared Value...
Eight Important Lessons  A Bias for Action  Close to the Customer  Autonomy and Entrepreneurship  Productivity Through...
Man Waiting for Motivation• Everybody likes Appreciation• Fundamental Attribution Theory• Simplicity and Complexity• Posit...
Managing Ambiguity andParadox    07/16/12
Managing Ambiguity andParadoxElements of Basic Human Needs• Need for Meaning• Need for a Modicum of Control• Need for Posi...
A Bias for Action   A bias for getting things done   Organizational fluidity:    It refers to the need of adhocacy as a ...
A Bias for Action    Ad hoc task force:•   There aren’t many members on these task    forces,usually ten or less.•   The t...
A Bias for Action• Follow up is swift.• No staff are assigned.• Documentation is informal at most,and often  scant.  Proje...
A Bias for Action    Experimenting organisation:•   Do it, fix it and try it.•   Chaotic action is preferable to orderly i...
A Bias for Action  Speed and numbers:• Eagerness and sheer number of experiments  are critical ingredients to success thro...
A Bias for Action    Experiment context:•   Experiment won’t work if the context is is    wrong.    Simplifying systems an...
Close to Customers• The good news from the excellent companies  is the extent to which, and the intensity with  which the ...
Close to CustomersService Obsession:• Close to customer through service    concept.• Nemeroff finds three principal themes...
Close to CustomersQuality Obsession:• The company’s operating principles seem to  be an individual version of the Boy Scou...
Close to CustomersNichemanship:• The customer orientation is by definition a way  of “tailoring” - a way of finding a part...
Close to Customers     The five attributes of the companies that     are close to the customer through niche     strategie...
Autonomy and           Entrepreneurship• Playing the Numbers:- Not Surprisingly, most champions fail  most of the time. Ma...
Autonomy and Entrepreneurship Communication systems are  informed Communication intensity is  extraordinary Communicati...
Productivity Through    People• Treat people as adult.• Treat them as partners.• Treat them with dignity & respect.• Treat...
Hand on Value Driven1. A belief in being the “ best”.2. A belief in the importance of the details ofexecution, the nuts an...
Simple Form, Lean Staff• The organization gets paralyzed because the  structure not only does not make priorities  clear i...
Stick to the Knitting• Excellent companies have strategies of  entering only those businesses that build on,  draw strengt...
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In Search of Excellence

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In Search of Excellence

  1. 1. In Search of Excellence Tom Peters & Robert H Waterman Jr. Archana Misra Rohit Trivedi Sriram Peri 07/16/12
  2. 2. Overview How does one achieve Success? Can Success be Achieved through Structure and Strategy? Is Structure followed by Strategy or Vice-Versa? 07/16/12
  3. 3. Criteria for SuccessMcKinsey 7-S Framework• Strategy• Structure• Systems• Style• Staff• Skills• Shared Values 07/16/12
  4. 4. Eight Important Lessons  A Bias for Action  Close to the Customer  Autonomy and Entrepreneurship  Productivity Through People  Hands-on, Value Driven  Stick to the Knitting  Simple Form, Lean Staff  Simultaneous Loose-Tight Properties 07/16/12
  5. 5. Man Waiting for Motivation• Everybody likes Appreciation• Fundamental Attribution Theory• Simplicity and Complexity• Positive Reinforcement o Specific o Immediate o Achievable o Intangible o Unpredictable and Intermittent• Action, Meaning and Self-Control• Transforming Leadership 07/16/12
  6. 6. Managing Ambiguity andParadox 07/16/12
  7. 7. Managing Ambiguity andParadoxElements of Basic Human Needs• Need for Meaning• Need for a Modicum of Control• Need for Positive Reinforcement• The Degree to which Actions and Behaviours Shapes Attitudes and Beliefs rather than Vice Versa 07/16/12
  8. 8. A Bias for Action A bias for getting things done Organizational fluidity: It refers to the need of adhocacy as a way of corporate life. Bureaucracy is not enough. Chunking: Breaking things up to facilitate organizational fluidity and to encourage action. Small groups are the most visible of the chunking devices. 07/16/12
  9. 9. A Bias for Action Ad hoc task force:• There aren’t many members on these task forces,usually ten or less.• The task force reporting level, and the seniority of its members, are proportional to the importance of the problem.• The duration of the typical task force is very limited.• Menbership is usually voluntary.• The task force is pulled together rapidly,when needed,not accompanied by a formal chartering process. 07/16/12
  10. 10. A Bias for Action• Follow up is swift.• No staff are assigned.• Documentation is informal at most,and often scant. Project teams and project centres:• The task force is an exciting,fluid ad hoc device in the excellent companies. It is virtually the way of solving and managing thorny problems and an unparalleled spur to practical action. 07/16/12
  11. 11. A Bias for Action Experimenting organisation:• Do it, fix it and try it.• Chaotic action is preferable to orderly in action.• The most important and visible outcropping of the action bias in the excellent companies is their willingness to try things out,to experiment.• The cricital factor is an environment and a set of attitudes that encourage experimentation. 07/16/12
  12. 12. A Bias for Action Speed and numbers:• Eagerness and sheer number of experiments are critical ingredients to success through experiments.• Under deadline pressure and with manageable acts to perform,impossible occurs regularly. 07/16/12
  13. 13. A Bias for Action Experiment context:• Experiment won’t work if the context is is wrong. Simplifying systems and action orientation:• If there is a major problem,bring the right people together and expect them to solve it.• Ready. Fire. Aim.• Learn from the tries. That’s enough. 07/16/12
  14. 14. Close to Customers• The good news from the excellent companies is the extent to which, and the intensity with which the customers intrude into every nook and cranny of the business -sales, manufacturing, research, and accounting.• Other companies talk about it; the excellent companies do it. 07/16/12
  15. 15. Close to CustomersService Obsession:• Close to customer through service concept.• Nemeroff finds three principal themes in an effective service orientation: 1. Intensive,action involvement on the part of senior management. 2. A remarkable people orientation. 3. A high intensity of measurement and feedback. 07/16/12
  16. 16. Close to CustomersQuality Obsession:• The company’s operating principles seem to be an individual version of the Boy Scout law The main principles of excellence are 1. quality 2. reliability of performance and 3. loyalty in dealer relationships. 07/16/12
  17. 17. Close to CustomersNichemanship:• The customer orientation is by definition a way of “tailoring” - a way of finding a particular niche where you are better at something than anybody else.• Companies divide their customer base into numerous segments so they can provide tailored products and services. In doing so, they take their products out of the commodity category, and then they charge more for them. 07/16/12
  18. 18. Close to Customers The five attributes of the companies that are close to the customer through niche strategies are:2. Astute technology manipulation.3. Pricing skill4. Better segmenting5. A problem solving orientation6. Willingness to spend in order to discriminate 07/16/12
  19. 19. Autonomy and Entrepreneurship• Playing the Numbers:- Not Surprisingly, most champions fail most of the time. Management most allows a sufficient member of project with a long enough lead-time for the characteristic 1:20 success ratio to have effect.• Sub optimal Division :- Each division as at 3M, has it won product development group. The message from the excellent companies is "Small is beautiful".• Internal Competition:- These are two ways of sorting things out is on organization. First if driven by rules or bureaucracy and the second is driven by interval markets and internal competition. Internal competition entails the excellent companies high costs of duplication, cannibalization, overlapping product etc.• Intense Communication:- In excellent companies, there are five attributes of communication systems that seems to foster innovation. 07/16/12
  20. 20. Autonomy and Entrepreneurship Communication systems are informed Communication intensity is extraordinary Communication is given physical support Forcing device The intense, informal communication system acts as a remarkably tight control system. 07/16/12
  21. 21. Productivity Through People• Treat people as adult.• Treat them as partners.• Treat them with dignity & respect.• Treat them, not as capital spending and automation, as the primary source of productivity gains.• Treat workers as the most important asset. 07/16/12
  22. 22. Hand on Value Driven1. A belief in being the “ best”.2. A belief in the importance of the details ofexecution, the nuts and bolts of doing the job well.3. A belief in the importance of people asindividuals.4. A belief in superior quality and service.5. A belief that most members of theorganization should be innovators and incorollary , the willingness to support failure6. A belief in the importance of informality toenhance communication.7. Explicit belief in and recognition of theimportance of economic growth and profits. 07/16/12
  23. 23. Simple Form, Lean Staff• The organization gets paralyzed because the structure not only does not make priorities clear it automatically dilutes the priorities.• The simplicity of form in excellent companies comes from only one thing that is lean staff, especially at the corporate level.• Fewer administrators and more operators 07/16/12
  24. 24. Stick to the Knitting• Excellent companies have strategies of entering only those businesses that build on, draw strengths from, and enlarge some central strength or competence.• The difference between the excellent companies and the non-performing one is that excellent companies don’t taste the water with their both feet. Better yet when they stuck a toe in new waters and failed, they terminated the experiment quickly. 07/16/12

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