I just caught up to this great post on Tom Peters’ blog that gives historic context to the debate over efficiency vs. creativity that we started in the last issue of Inside Innovation.
It was a story by Brian Hindo on how an ex-GEer put a Six Sigma overlay over 3M, straightened out its processes but hurt its wonderful innovation culture.
Peters points out that in his 1997 book Circle of Innovation, he warmed about Six Sigma. Here’s a piece of what he has to say:
“I was riffing on the problems associated with ISO 9000 certification, and unearthed the perfect quote to match my sentiments, courtesy Richard Buetow, then director of corporate quality for business systems at Motorola:
“With ISO 9000 you can still have terrible processes and products. You can certify a manufacturer that makes life jackets from concrete, as long as those jackets are made according to the documented procedures and the company provides next of kin with instructions on how to complain about defects. That’s absurd.”
What’s particularly interesting about that, in addition to the amusing-but-deadly-serious content, is that the speaker is a Motorolan. Long before Welch at GE, Motorola was the poster child for wholesale adoption of Six Sigma quality processes. And, though the process worked wonders on quality in the short term, it apparently starved innovation, an under-tended priority for historically innovative Motorola—until the RAZR signified a return to corporate roots.”
Peters goes on to point out that 20 years ago, Florida Power & Light was the first US company to get Japan’s famous Deming Award (named after that great quality-control guru W. Edward Deming). What people forget is that the company took off most of those controls several years later because it was choking it to death.
Tom was there in this debate way before we were.
When I read this post it often reminds of how misinterpreted that Nicolas Carr was when he wrote IT doesn't matter. What people missed is not that Nick thought you didn't need to pay attention to IT, simply that is was expected that you would master it to whatever degree was required in your enterprise. Great IT wasn't going to get you a pat on the back, it was merely a requirement to get in the door. Six Sigma can certainly bury a company and it by no means ensures that a company will make things that people may want or be useful (although they could still perhaps be well made.)
What similar about Six Sigma concerning IT Doesn't Matter is that quality and reliability are now also a 'table stake.' You simply need to have them to play anymore and you're certainly not going to get rewarded for doing them well.
But I think the next table stake is going to be design. In that people will simply expect things to be well designed and companies won't be rewarded for it as much as it will simply be a requirement for playing.
I personally think on the design front we already see design as a table stake. So what is the enterprise to do? I think this is where innovation comes in. I think Apple and Target are successful because of how they use design (along with IT and quality) to create platforms of innovation. The success of the iPod is largely not just of the device but that platforms and services that surround it.
Target does this to high effect as well with things like the Clear RX bottle which is beautiful, useful but also has an impact of increasing foot traffic in a store if Target can get a customer to start using their pharmacy more frequently.
So perhaps this is a long winded way of acknowledging Tom Peter's work and understanding today that the new table stakes might really be the trinity that is evangelized by Doblin (roughly paraphrased as..."What does the market need, what can technology do, what do customes desire.)
The trick for the future vitality of companies is figuring out the processes that are culturally viable in your enterprise that enables you to build platforms on which you can innovate on. Getting mired too much in any one area (even design) is not going to enable the continued vitality of most enterprises.
This idea of certain competencies being necessary for an organisation - a 'table stake' - is critical. If a company cannot undertake certain base activities in the most efficient way possible, ie. routinize the boring stuff, how can they free up the resources to do the cool stuff?
That is the benefit that Six Sigma can give, make the routine stuff run really cost effectively and efficiently.
But if anyone dumb enough to try and use a process improvement methodology to drive innovation deserves whatever badness arises as a result.
IMHO two different things - business as ususal v. innovation - need (at least) two different approaches.
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