Sunday, January 22, 2006

TPS v/s Six Sigma

Lately I have developed a sort of theory of my own about the kind of enterprises. I have basically divided them into

a) Organic Organizations:
They are the "family" culture driven organizations. I put "family" businesses, brotherhoods, sororities etc. into this category. They are guided by a single or group of fatherly figures. Welfare of all in "family" is the primary consideration.

b) Democratic Organizations: They are the consensus driven organizations. An ideal example of this category is Ricardo Semler's Semco.

c) Metric Driven Organizations: I am currently working for a perfect example for such an organization :). Another one is Jack Welch's GE. In such organizations the emphasis is on finding the star performers and grooming them.

d) People Driven Organizations: I very good example is Toyota. The emphasis is in the involvement and developing a feeling of belonging.

However, the largest number of organization is a combination of these traits. However in my personal opinion, a mix of "people driven" and "metric driven" organizations is the best suited for profit driven organization who wish to play a long innings.

Metric driven "6 Sigma" approach can be used to turn a slow and old Dreadnought into a highly agile and lean Battlecruiser. At the same time "People Driven" TPS will give you a highly motivated men and women to run the enterprise efficiently.

And last but not the least... Love them! Hate them! But for Gods sake! Let’s learn to build them. I hope people are listening.

Good luck!

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