Articles


Is it Process or People?

October 1, 2000

Eighty-five percent of an organization's problems and inefficiencies lie in its processes-only fifteen percent lie in its workers. So, it makes sense that American businesses have put so much of their resources and energy in the last fifteen years into improving internal systems.

At the same time, executives spend a great deal of time addressing peoples' attitudes and behaviors. Jack Welch, CEO of General Electric, spends more than 50% of his time on people issues, according to Business Week. In fact he considers his greatest accomplishment to be the care and feeding of talent-people talent. But he also demands process-thinking as a foundation for that talent. This combined approach has lead to high productivity and profit-results that seem to support his leadership strategy!

Today's successful consulting companies understand the more comprehensive dynamic of improving systems while attending to the people. Rapid business cycles don't allow companies to use a trial and error approach. By identifying and attacking root causes, businesses break out of the pattern of band-aid solutions that may temporarily treat a symptom but ultimately delay lasting progress. That's why it is critical to address both process and people improvement.

Here are three proven methodologies that can be combined to address a company's key performance needs:

· Six sigma methodologies uses statistical processes to minimize the gap between what your customers need or want and the product or service you deliver.

· Lean Enterprise helps companies build the highest quality product at the lowest possible cost. These theories, methods and tools are based on the world's most efficient manufacturing technology, the Toyota production system.
· Executive Development helps leaders to fully integrate their leadership style with required business competencies. This powerful combination allows organizations to succeed in today's highly competitive business environments.

Look for future articles to learn more about these approaches. Case studies and examples will succinctly illustrate steps actual companies took and benefits they derived from attending to both the process and the people.

Eric Hummel, PhD is Vice President of Meeting the Challenge Group at Oriel Incorporated, formerly Joiner Associates. He provides assessments and development services for leaders and executives. Eric can be reached at 238-8134, Ext. 218 or hummel@orielinc.com

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