Saturday 1 November 2014

Productivity or Quality

I have been in discussions many times with businessmen and advisers about whether firms should concentrate on their productivity or their quality - which has the biggest impact on success.

Of course the quick answer is "Both" - they are not mutually exclusive!

But I remember listening to my colleague Tor Dahl who used to suggest that productivity initiatives release energy and innovation (they unfreeze the organisation); quality initiatives standardise systems and processes to 'lock in' quality (and they freeze the organisation).  Another way of putting it is that quality initiatives help cement the gains realised by a productivity initiative.

So, we do need them both - but not necessarily sat the same time.  There seems to be a natural sequence of productivity-quality-productivity-quality.

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