Mediocracy Instead of Excellence(For the German version of this post, click Link).
Then there are the spectacular crashes like Nokia,
Kodak or General Motors. Most firms however get stuck in mediocracy. These
firms do survive, but ultimately offer only weak returns, jobs without great
career prospects and a customer service that leaves a lot to be desired. Often
success depends on a charismatic entrepreneur, when he leaves then the company
falls apart.
In fact only few companies achieve the leap to the desired
top performance – to Business Excellence. This article investigates the
fundamental reasons for these challenges and possible approaches to overcome
these.
The points of departure for companies often are
astounding comparable. While one company evolves and generates high growth and
profits, languishes the other company and will be taken over in the best case. The
difference should be pointed out with an example from real life.
From Top to Flop – a
Real Life Example
A topical example concerns a furniture manufacturer which
boasted nearly €300 million of sales. The most reputable Lean consultants
implemented a brand new process flow production system with all the modern
methods – top notch. Their designs captured prestigious awards. The quality
management scored coveted certificates. Internationalization was pushed
globally.
However, during the crisis strong distortions appeared
and a comprehensive efficiency program was launched. Despite all, revenue
tanked continuously. Then the thunderbolt: a loss of 15% of sales, which dealt
the company a heavy blow.
The executive management was fired at once. The
company could be saved from immediate insolvency just due to massive business
retreat, generous credit write-offs and a change of ownership. The mid-term future
and the jobs are still uncertain.
In contrast to that a direct competitor, which – starting out from a difficult situation – pursued an excellence strategy. With an
investment of more than €10 million in automatization and process integration
this company outperformed its competition with higher customer attraction and
better process mastery. A considerate and effective customer strategy won them
gradually market shares. A few years down the road the initially dismissed
underdog managed to surpass the former darling of the stock exchange and achieved
market leadership. The future looks promising and further growth is pursued
aggressively.
This real example demonstrates that the required
methods and conditions are available to all competitors. But only the challenger
has effectively exploited his chance and achieved with decisive measures the
desired excellence.
Naturally, every success has many fathers and a
profitable business performance is never guaranteed. Therefore a more profound
investigation of the root causes for consistent, sustainable Business
Excellence is much-needed.
> > This blog post is number 2 of the blog series
“Business Excellence: How
to Activate Your Inner Excellence.” To
be continued….
For further information about the path to Business
Excellence contact the author Andreas Sattlberger, Executive Advisor for
Business Excellence at the firm procon in Vienna, Austria. You can reach him at
sattlberger@procon.at
