Evolve or Resolve? Operational efficiency can be a strategic advantage. Take it!

I recently listened to a Podcast by Rafaella Sadun explaining why common sense management practices are so hard to implement. In her studies & co-authored book, she suggests that managers wrongfully assume they are average or better than average. Basic operational competence is often overlooked as core competence. While she talks of ways to introduce managerial processes, I question the process model approach holistically. Since most businesses rely on a collection of processes, how often are these reviewed and is tweaking them secondary to overhauling the whole?

There's much hype on exponential thinking and this is great but we need a moderator. Seldom, if ever, do you need to change the entire car when the tyre is flat. The replacement mentality has limits, and we need to be mindful of what's driving the rapidly decreasing mechanical mind-set, where fix it is an option. People are obsessed with the notion that big changes = big results, yet history is rife with examples on how little changes made for big differences. Apart from well known scientific discoveries, here are two more recent examples:

Source: Google Trends

1) Apple iPhone: Some would argue that not much changes from one iPhone release to the next. Hard core fans tend to disagree. In reality, more often, there’s not much but minor tweaks. Apple realized that users were seeking simplicity & ease of use. While they were brave to opt for a closed proprietary system, it’s a major contributor to their success. Limiting the number of ways users could interact with their device saw a more stable product and underpins the way Apple positions it’s product as a means to achieving specific ends.  Interest over time may not be exponential, but it’s no co-incidence, the peaks are usually around September.

2) In another less popular example, the case written by Clayton Christensen in his book, “How will you measure your life”, describes an approach to situations by simply asking: ‘what job am I recruited to do?’ The story goes around a fast food outlet who attempted to increase sales of their milkshake. They tried changing the recipe in a number of ways to add flavour in the hope of making it more desirable. Turns out, all they needed to do was toggle the texture to make it thick enough to last through morning traffic or thinner for a quick lunch or evening drink.

The right tweaks are not always easy to find. In the operational environment, it starts with having well documented processes and a thorough understanding of its inputs & impact. There is usually no need to outspend rivals on R&D, and some idea boxes seldom see the light of day. Incentive schemes, properly managed, has the potential to generate a huge repository of thoughts, but again only the biggest win, yet the real value comes from mining the remainder. Merely encouraging a culture of, ‘what if’ can sometimes uncover nuggets of opportunities, and instilling a continuous improvement practice is invaluable.

Enabling tweaks are just as crucial. Filters and bureaucracies governing development & implementation stifle creativity. While control is necessary, building accountability with a level of authority might offer some degree of freedom. Simulations and good testing practices are always useful to uncover any pitfalls.

Finally remember, not to throw away too much good to resolve the bad, nor the "baby with the bath water". Rather than being overly critical, be sensible. You can miss the strength or weakness of something, by looking too hard at the end product, just as you misjudge the strength of a tree, by looking only at its leaves.